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Value of In-Process Research & Development

What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a business combination?

a. Always expense upon acquisition.
b. Always capitalize as an asset with future economic benefit.
c. Expense if there is no alternative use for the assets used in the research and development and technological feasibility has yet to be reached.
d. Expense until future economic benefits become certain and then capitalize as an asset.

Solution Summary

Answers the multiple choice accounting treatment question with brief explanation.

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