sksksksksk1
02.11.2020 •
Business
Illini Imaging recorded capitalized software development costs of $1,400,000 at the end of 2021. The 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. Amortization of the software development costs for the year 2022 would be:
Solved
Show answers
More tips
- G Goods and services How to Choose a Coffee Maker? The Ultimate Guide for Coffee Lovers...
- O Other How to Accidentally Get a Rare Coin with Your Change and How to Know Its Value?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- D Dating, Love, Relationships Why do we feel shame?...
- F Family and Home Why Does God Punish Us Constantly and How Can We Fix It?...
- F Family and Home Do Lullabies Help Babies Sleep or Is it Just a Myth?...
- B Business and Finance How to Get Your Money Back When Lending? Top 7 Ways...
- S Society and Politics Выборы: Смысл, Значение и Отражение...
- D Dating, Love, Relationships Why Should the Man be Active and the Woman Passive during Foreplay?...
- P Philosophy How did the concept of module arise in computer science?...
Answers on questions: Business
- B Business A. suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. the federal reserve estimates that a change in the money supply of...
- B Business The bears corporation has provided you the following information: increase in accounts receivable balance 50,000 net sales 500,000 gross profit as a percentage of net sales 40%increase...
- B Business On january 1st, great designs company had a debit balance of $1,450 in the office supplies account. during the month, great designs purchased $115 and $160 of office supplies...
- B Business On may 1, year 1, carty corp. properly classified as held for sale an asset group that qualified as a component of the entity. furthermore, the transaction met the criteria for...
- B Business Assume ford motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects these to grow at 4% each year. the upfront project...
- B Business During the announcement of the merger between body metal and shimmer, the two ceos neglected to mention that to avoid duplication, some positions would be eliminated and employees...
- B Business On july 8, a fire destroyed the entire merchandise inventory on hand of larrenaga wholesale corporation. the following information is available: sales, january 1 through july...
- B Business Which of the following would you not find on a w-4: question 3 options: exemptions—can claim 1 if not claimed as a dependent on someone else s; addition exemptions for those living...
- B Business In which career or job role in business information management do you need to create and manage project plans, and also coordinate with team members? a. business analyst b. project...
- B Business Compare the absolute Advantage theory of trade with the Comparative advantage theory of trade. A country can have a comparative advantage in producing a good even if it is absolutely...
Ответ:
amortization expense year 2022 = $560,000
Explanation:
There are two in which you can amortize software development costs, one is straight line method (4 years) and the other is similar to the depletion amortization.
In this case, I believe that depletion amortization is better, since most of the revenues will be generated during the first year or years, but the useful life is much longer.
total expected revenue = $10,000,000
total R&D capitalized costs = $1,400,000
you should amortize $1,400,000 / $10,000,000 = $0.14 per every $1| of revenue:
amortization expense year 2022 = $0.14 x $4,000,000 = $560,000
Ответ:
Hope this helps.