Which one of the following statements is correct?
a. When there is significant uncertainty about whether an expenditure should be capitalized or expensed, capitalize it.
b. When there is significant uncertainty about whether an expenditure should be capitalized or expensed, expense it.
c. Generally, advertising costs are capitalized because it is easy for firms to trace advertising dollars spent to revenue generated from such advertisements.
d. Expenditures made for equipment and buildings should be expensed in the period of the purchase.
e. Research and development expenditures are typically capitalized in the period in which they are incurred.