Tecktroniks Company Reported in Its Annual Report Software Refinement Expenses

question 3

Multiple Choice

Tecktroniks Company reported in its annual report software refinement expenses of $12 million, $15 million, and $18 million for fiscal years 2005, 2006, and 2007, respectively. At the end of fiscal 2007, it had total assets of $140 million. Net income was $20 million for fiscal 2007, and it had a marginal tax rate of 35%.
-If software refinement had been capitalized each year and amortized over a three-year period beginning in the year the cost was incurred, total assets at the end of fiscal 2007 would have been:

• A)$185 million.
• B)$172 million.
• C)$158 million.
• D)$157 million.

---

Definitions:

Significant Behavior Patterns

Regularly occurring actions or reactions that have importance in predicting or understanding an individual's behavior.

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause significant distress or anxiety.

Delusions

Strongly held false beliefs or judgments, which are resistant to reason or confrontation with actual fact, often occurring as a symptom of psychiatric disorders.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.