Danielson Inc. incurred the following costs during 2013:
a. current-period depreciation on the building housing the R&D activities
b. cost of a market research study
c. current-period depreciation on a machine used in multiple R&D activities
d. salary of the director of R&D
e. salary of the vice president who spends one-third of her time overseeing the R&D activities
f. pension costs for the salaries in Items d and e
Required:
1. Which of the following are included in R&D costs of the current period? Justify each answer.
2. Next Level What is the justification of expensing all costs that are classified as R&D?