During its first year of operation, Dovery Company incurred $305,000 of research costs undertaken ...

During its first year of operation, Dovery Company incurred $305,000 of research costs undertaken with the prospect of gaining new technical understanding about a new nanotechnology procedure. An additional $545,000 was incurred to develop a production process to use that new technology to produce a new lubricant product. Under U.S. GAAP, which of the following is the appropriate accounting for these costs?
A) expense $850,000
B) expense $305,000 and capitalize $545,000 as an intangible asset
C) expense $545,000 and capitalize $305,000 as an intangible asset
D) capitalize $850,000 as an intangible asset