**Question:** Dow Chemical Corporation plans to build a laboratory dedicated to a special research and development project. The company will not use the laboratory after the project is finished. Under GAAP, this laboratory should be:- Capitalized- Capitalized when the project is almost finished- **Expensed when the project is almost finished** (correct answer)- Expensed**Explanation:** The question explores how to account for a laboratory constructed for a specific project, where the asset will not be used afterward. Generally Accepted Accounting Principles (GAAP) guide that such costs should be recognized as expenses when they are almost finished if they have no future use or benefit. The correct option indicates that this cost should be expensed at the point near completion of the project, rather than capitalized, due to its limited use beyond the project’s scope.

As perGAAP, Project or any specific research assets such as buildings and equipment having no…

Answered: Dow Chemical Corporation plans to build…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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