If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building ismatched against earnings asO depreciation expensed as part of research and development costs.O depreciation or immediate write-off depending on company policy.O research and development expense in the period(s) of construction.O an expense at such time as productive research and development has been obtained from the facility.

Name: If a company constructs a laboratory building to be used as a researc
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Description: If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building ismatched against earnings asO depreciation expensed as part of research and development costs.O depreciation or imm

Depreciation is a reduction in the value of asset over a period of time. If a company construct a laboratory, it would be expensed as depreciation because it is a long term asset for which depreciation would be charged for its use. And the laboratory is constructed for the research and development purpose, it would be expensed as research and development cost. Therefore, option "a. Depreciation expensed as part of research and development costs." is correct.

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If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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