Development costs prior to reaching technological feasibility Development cost after reaching technological feasibility Cost of duplicating saleable product to be sold over the life of the software Estimated revenues over three-year total product life Revenue in the first year of product life How much is the total software related expense for the year? P800,000 480,000 9,600,000 24,000,000 8,000,000

Development costs prior to reaching technological feasibility Development cost after reaching technological feasibility Cost of duplicating saleable product to be sold over the life of the software Estimated revenues over three-year total product life Revenue in the first year of product life How much is the total software related expense for the year? P800,000 480,000 9,600,000 24,000,000 8,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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May I ask for help with this question? I got an answer of 800,000 (Rounded Up) Please check.

P Co. incurred the following costs in developing software :

Development costs prior to reaching technological feasibility
Development cost after reaching technological feasibility
Cost of duplicating saleable product to be sold over the life of the software
Estimated revenues over three-year total product life
Revenue in the first year of product life
How much is the total software related expense for the year?
P800,000
480,000
9,600,000
24,000,000
8,000,000

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