Blanco Chemical Company spent 15,000,000 in development efforts to create a fert

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1.       Blanco Chemical Company spent  15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.  According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the  15,000,000? Answer                                         
              as a  "Deferred Development Cost" on the Balance Sheet                             
              as "Fertilizer Revenue" on the Income Statement                             
              as "Development Expense" on the Income Statement                             
              It should only be reported in the notes to the financial statements.        

      

1.       Blanco Chemical Company spent  15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.  According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the  15,000,000? Answer                                         
              as a  "Deferred Development Cost" on the Balance Sheet                             
              as "Fertilizer Revenue" on the Income Statement                             
              as "Development Expense" on the Income Statement                             
              It should only be reported in the notes to the financial statements.        

         Blanco Chemical Company spent  15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.  According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the  15,000,000? Answer                                         
           as a  "Deferred Development Cost" on the Balance Sheet                             
           as "Fertilizer Revenue" on the Income Statement                             
           as "Development Expense" on the Income Statement                             
           It should only be reported in the notes to the financial statements.         Blanco Chemical Company spent  15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.  According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the  15,000,000? Blanco Chemical Company spent  15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.  According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the  15,000,000? as a  "Deferred Development Cost" on the Balance Sheet as "Fertilizer Revenue" on the Income Statement as "Development Expense" on the Income Statement It should only be reported in the notes to the financial statements.                             
           as a  "Deferred Development Cost" on the Balance Sheet                             
           as "Fertilizer Revenue" on the Income Statement                             
           as "Development Expense" on the Income Statement                             
           It should only be reported in the notes to the financial statements.

Explanation / Answer

as "Development Expense" on the Income Statement

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