Which of the following scenarios reflects the correct application of U.S. GAAP for capitalization of certain expenditures as intangible assets?
A) A company's marketing department researches, develops and promotes a completely new name, packaging and design for its main product line, capitalizing $1.8 million in related costs. Previously, the brand had remained unchanged for 45 years.
B) A pharmaceutical company capitalizes cost of $47 million after 5 years of researching and developing a new hair growth pill.
C) A company capitalizes $12 million of research and development costs incurred during the most recent operating cycle.
D) A software company capitalizes $3.9 million in development costs after a working model of its newest product is completed. It is beyond the beta testing stage.