• X Software began a new development project in 2021. The project reached technologicalfeasibility 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 $3,200,000 and costs incurred fromJune 30 to the product release date were $1,400,000. 2022 revenues from the sale of the newsoftware were $4,000,000 and the company anticipates additional revenues of $6,000,000. Theeconomic life of the software is estimated at four years. 2022 amortization of the softwaredevelopment costs would be:O $0.O $350,000.O $1,840,000.O $560,000.

The right option is D $560,000.

Answered: project in 2021. The project re ailable…

project in 2021. The project re ailable for release to custome ne 30, 2021 were $3,200,000 ere $1,400,000. 2022 revenue npany anticipates additional re ted at four years. 2022 amorti

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

• X Software began a new development project in 2021. 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 $3,200,000 and costs incurred from
June 30 to the product release date were $1,400,000. 2022 revenues from the sale of the new
software were $4,000,000 and the company anticipates additional revenues of $6,000,000. The
economic life of the software is estimated at four years. 2022 amortization of the software
development costs would be:
O $0.
O $350,000.
O $1,840,000.
O $560,000.

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