On its 2016 income statement, Abbott Laboratories reported research and development expense of $1,422,000,000. Which of...

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On its 2016 income statement, Abbott Laboratories reported research and development expense of $1,422,000,000. Which of the following statements must be true? A) Abbott Laboratories spent $1,422,000,000 in cash to develop new products and improve old products. B) Research and development expense reduced Abbott Laboratories 2016 net income by $1,422,000,000. C) Abbott Laboratories capitalized at least $1,422,000,000 of research and development costs in 2016. D) The $1,422,000,000 included amortized research and development costs from prior years that were not previously expensed, because Abbott Laboratories incurs such expenses each year. E) None of the above On its 2016 income statement, Abbott Laboratories reported research and development expense of $1,422,000,000. Which of the following statements must be true? A) Abbott Laboratories spent $1,422,000,000 in cash to develop new products and improve old products. B) Research and development expense reduced Abbott Laboratories 2016 net income by $1,422,000,000. C) Abbott Laboratories capitalized at least $1,422,000,000 of research and development costs in 2016. D) The $1,422,000,000 included amortized research and development costs from prior years that were not previously expensed, because Abbott Laboratories incurs such expenses each year. E) None of the above

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The detailed answer for the above question is provided below Solution The correct answer is D The 14... View the full answer