Use the Following Information for Questions

question 7

Multiple Choice

Use the following information for questions
Jessup Corp.will acquire a controlling stake in the outstanding shares of Parasol Inc.for
$9.2 million in cash.
-Mouse Software Company has capitalized computer software costs of $3.6 million related to its spreadsheet product.The software is expected to have a four-year economic life and generate future revenues of $25 million.Revenues generated by this software during 2010 (first year) amounted to $7.5 million.The proper amount of software costs amortized to be recognized by Mouse in 2010 should be

• A)$900,000.
• B)$3,600,000.
• C)$2,812,000.
• D)$1,080,000.

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Definitions:

Parent Company

A corporation that owns controlling interest in one or more other companies, referred to as subsidiaries.

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.

Parent Ltd

A corporation that holds a controlling interest in one or more other companies, also referred to as subsidiaries.

Indirect NCI

Non-controlling interest (NCI) that is not directly held by another entity but is held through one or more intermediaries.