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In-process research and development acquired in a business combination is Select one: A. credited to the Equity Investment account. B. recorded as indefinite-lived intangible assets, subject to amortization. C. expensed, consistent with the accounting treatment of a firm's own R & D expenditures. D. recorded as an indefinite-lived intangible asset, and annually tested for impairment.

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Lanuel

Answer:

D. recorded as an indefinite-lived intangible asset, and annually tested for impairment.

Explanation:

In-process research and development acquired in a business combination is recorded as an indefinite-lived intangible asset, and annually tested for impairment.

In-process research and development costs are essential part of the financial income statement, it assist investors to make good, well-informed and tangible investment decisions in a newly acquired company.

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