In February 2024, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to track their health status. The project was completed in November 2024 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established. Culverson expects a useful life of two years for the new product and total revenues of $1,500,000. Determine the amount that Culverson should capitalize as software development costs in 2024. Software development cost
In February 2024, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to track their health status. The project was completed in November 2024 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established. Culverson expects a useful life of two years for the new product and total revenues of $1,500,000. Determine the amount that Culverson should capitalize as software development costs in 2024. Software development cost
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:In February 2024, Culverson Company began developing a new software package to be sold to customers. The software allows
people to enter health information and daily eating and exercise habits to track their health status. The project was completed in
November 2024 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established.
Culverson expects a useful life of two years for the new product and total revenues of $1,500,000.
Determine the amount that Culverson should capitalize as software development costs in 2024.
Software development cost
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