How should NSB$,$ Inc. report significant research and development costs incurred for a new product?

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$$A$.$

Expense all costs in the year incurred.

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$$B$.$

Capitalize the costs and amortize over the new product's useful life.

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$$C$.$

Include in prepaid expenses until the new product is commercially viable.

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$$D$.$

Expense all costs as part of the new product's cost of sales.