5. According to PAS 38 Intangible Assets, if an entity cannotidentify in which phase a cost is incurred, the costa. is allocated to research and development phases.b. is expensed as a regular expense.C. is capitalized and amortized over the shorter of theintangible asset's useful life and legal life.d. is regarded as incurred in research phase.6. Which of the following costs is a research and development(R&D) cost?a. Costs incurred during commercial productionD. Costs of advertising a product undergoing its final stage ofdevelopment- Costs of training employees who will be using a newlydeveloped computer systemCosts of producing a prototype model for a new invention

5. According to PAS 38 Intangible Assets, if an entity cannot identify in which phase a cost is incurred, the cost a. is allocated to research and development phases. b. is expensed as a regular expense. C. is capitalized and amortized over the shorter of the intangible asset's useful life and legal life. d. is regarded as incurred in research phase.

5. According to PAS 38 Intangible Assets, if an entity cannot identify in which phase a cost is incurred, the cost a. is allocated to research and development phases. b. is expensed as a regular expense. C. is capitalized and amortized over the shorter of the intangible asset's useful life and legal life. d. is regarded as incurred in research phase.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 29BE

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