Reference no: EM132052688
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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