Axcel Software began a new development project in 2020. The project reached technological feasibility on...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Axcel Software began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to June 30, 2021, were $3,220,000, and costs incurred from June 30 to the product release date were $1,420,000. The 2022 revenues from the sale of the new software were $4,518,000, and the company anticipates additional revenues of $5,522,000. The economic life of the software is estimated at four years. Amortization of the software development costs for the year 2022 would be:
a. $0
b. $355,000
c. $1,776,000
d. $639,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
