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


10. 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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B) Research and development expense... View the full answer

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