Filemyr Corporation,a U

Filemyr Corporation,a U.S.business,is a direct competitor of the Hyakawa Company,a Japanese firm.The two firms not only compete for customers,but also for investment capital.In 2012,each company spent about $3,000,000 U.S.dollars or the equivalent on research and development.US GAAP requires the entire amount to be expensed,while Japan requires its businesses to capitalize R&D and expense it over its useful life.Assuming the treatment of R&D is the only difference between the two firms,which of the following is correct?

A) Filemyr will have higher total assets than Hyakawa in 2012.
B) Hyakawa will have a lower net income for 2012.
C) Filemyr will have a higher debt-to-assets ratio than Hyakawa in 2012.
D) There will be no differences between the two companies' financial statements for 2012.

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