ASSIGNMENT 4 (5 points) You are the accounting manager for a start-up company investing in gene therap hanging out at the water cooler one day you overhear a discussion from depan R&D and product management as to the treatment of various costs any investing in gene therapy. While a discussion from department heads in Below are a few of the comments. Instructions: Complete the second column indicating and classified in the financial statements. In other words, shoul ancial statements. In other words should the expenditures be capitalized OR should they be charged as R&D Expense. w these costs should be reported How should this be reported and classified in the financial statements ? 3. Comment "We just purchased some lab equipment that will be used for our current research project, but we'll also be able to use the equipment for future projects Just hired a new chief scientist to lead the gene therapy project, but we had to pay top dollar, his salary is over $400,000" "Our outside lawyers just sent us an invoice for $1.5M to help us file the patent on our new cancer drug" "R&D Lab testing cost (all related to lab personnel) in March was over $2.5M. Much more than we anticipated" The cost of the new gene splicer was a shocker, we paid over $10M for this device, and it is only useful for this project