In a market system, scarce goods are allocated through the operation of estimated prices that are determined by consumers and producers acting in their own self-interest. market prices that are determined by consumers and producers acting in the public's interest. market prices that are determined by consumers and producers acting in their own self-interest. fixed prices that are determined by consumers and producers acting in the public interest. in a command economy, scarce goods are allocated by a government-appointed planning board based on the board's long-term priorities. an elected planning board based on the board's preferences. a government-appointed planning board based on the board's preferences. an elected planning board based on the board's long-term priorities.

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.