In March 2024, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The software then automatically records inventory as the shipment is received and read by scanners. The software development was completed in October 2024 at a cost of $190,000. Of this amount, $33,000 was spent before the application development stage was established. Price expects to use the software for at least five years. Determine the initial amount that Price should capitalize as software development costs. Capitalized costs
In March 2024, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The software then automatically records inventory as the shipment is received and read by scanners. The software development was completed in October 2024 at a cost of $190,000. Of this amount, $33,000 was spent before the application development stage was established. Price expects to use the software for at least five years. Determine the initial amount that Price should capitalize as software development costs. Capitalized costs
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:In March 2024, Price Company began developing a new software system to be used internally for managing its inventory. The
software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The
software then automatically records inventory as the shipment is received and read by scanners. The software development was
completed in October 2024 at a cost of $190,000. Of this amount, $33,000 was spent before the application development stage was
established. Price expects to use the software for at least five years.
Determine the initial amount that Price should capitalize as software development costs.
Capitalized costs
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