Question: All other things being equal, when comparing expensing or capitalizing the R&D expenditures (with straight-line depreciation), return on assets: (a)will decrease over time using capitalization

All other things being equal, when comparing expensing or capitalizing the R&D expenditures (with straight-line depreciation), return on assets:

(a)will decrease over time using capitalization

(b)will increase over time using capitalization

(c)will be constant using expensing.

(d)will initially be higher under expensing.

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