During Its First Year of Operation,Dovery Company Incurred $345,000 of Research

Multiple Choice

During its first year of operation,Dovery Company incurred $345,000 of research costs undertaken with the prospect of gaining new technical understanding about a new nanotechnology procedure.An additional $515,000 was incurred to develop a production process to use that new technology to produce a new lubricant product.Under U.S.GAAP,which of the following is the appropriate accounting for these costs?

A) expense $860,000
B) expense $345,000 and capitalize $515,000 as an intangible asset
C) expense $515,000 and capitalize $345,000 as an intangible asset
D) capitalize $860,000 as an intangible asset