R&D Expense and "alternative use" question

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  • #192331
    Anonymous
    Inactive

    I know that Research and Development Expenditures are generally expensed unless they are expected to have an “alternative use”. Let’s say you’re not expecting the furniture or equipment to have an alternative use and you expense it fully as R&D Expense. If you find out a few years later that you can use it for an alternative use and that it has a useful life of 3 more years, do you have to capitalize or make some time of prior year adjustment? Or since its already been fully expensed in a prior year, is there nothing else to do? I tried looking it up but can’t seem to find anything. Thanks in advance

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