At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have alternative future uses in research and development should be

A) capitalized
B) charged directly to retained earnings
C) included in R&D expense immediately
D) charged as a loss from continuing operations

Materials, equipment, facilities, and intangibles purchased from others that have alternative future uses in research and development are considered as assets and should be capitalized. This means that their cost will be recorded as an asset, and they will be amortized over the useful life of the asset or expensed when they are no longer useful. Charging these costs directly to retained earnings (B) or including them in R&D expense immediately (C) is not appropriate because they do not reflect the economic reality of the transaction. Charging them as a loss from continuing operations (D) is also not appropriate because they are not related to a loss.