The Perma Company Spent $300,000 on Research and Development During

Multiple Choice

The Perma Company spent $300,000 on research and development during Year 8 to generate new product lines.One of the three projects looks like it will ultimately be technologically feasible while the other two projects resulted in unsuccessful efforts.For the project which may become technologically feasible, a total of $125,000 was incurred during Year 8.Under U.S.GAAP, how much of the $300,000 should be recognized as an expense in Year 8?

A) $300,000
B) $225,000
C) $175,000
D) $50,000
E) $0