During year 1, Fanning Manufacturing Company incurred $124,700,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, how should these R&D costs be recorded in the financial statements?
a) Recorded as an expense on the income statement
b) Recorded as an intangible asset on the balance sheet
c) Recorded as a liability on the balance sheet
d) Recorded as revenue on the income statement
