Examine the credit terms below:

Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases 0% introductory APR for 10 months.
After that, your APR will be 10.99%, 15.99%, or 17.99%, based on your creditworthiness. This APR will vary with the market, based on the Prime Rate.

What happens to the APR after 10 months?
It decreases to 0%.
It increases to a variable rate of 10.99%, 15.99%, or 17.99%.
The credit terms do not specify how the rate will change.
There is no change to the interest rate.

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.