During 2020, PC Software Inc. developed a new personal computer database mai on the project were $1,800,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $3,000,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $10,000,000. At December 31, 2021, the carrying value of the software intangible asset is O $864,000. O $504,000. O $1,080,000. O $720,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures
on the project were $1,800,000, of which 40% occurred after the technological feasibility of the product had been established.
The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled
$3,000,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the
product are estimated to be $10,000,000.
At December 31, 2021, the carrying value of the software intangible asset is
O $864,000.
O $504,000.
O $1,080,000.
O $720,000.
Transcribed Image Text:During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $1,800,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $3,000,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $10,000,000. At December 31, 2021, the carrying value of the software intangible asset is O $864,000. O $504,000. O $1,080,000. O $720,000.
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