Question 5 (1 point) The appropriate way to record research and development expenses is as follows: 1) Capitalize them on the balance sheet until the research and development project is completed. If the project is a success, amortize the cost over the estimated useful life. If the research did not produce marketable results, then record the expense on the income statement. 2) Expense them to the income statement because true research and development is experimental and the nature is such that future cash flows are unknown and not determinable.