The following are several independent transactions.

a. A telecommunications company sponsors $10 million of university research into whether quantum entanglement can be used as a method of instantaneous communication.

b. An automobile manufacturer spends $30 million on a project to improve the lithium-ion batteries used in its electric and hybrid vehicles. The project results in a 10% improvement in the capacity of each battery.

c. A social media company spends $5 million on a project examining the usage habits of its customer base in order to optimize the company’s offering. This project is similar to a series of previous projects because the company is continuously engaged in improving its service. 

Required:

Determine whether the expenditures should be capitalized as development costs or expensed.