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:

Cultural Act

An action or behavior that is shaped by and contributes to the customs, beliefs, and traditions of a particular society or group.

Homosexual Behavior

Sexual activities or practices between individuals of the same sex.

Cultural Animals

Human beings viewed in the context of their creation, transmission, and evolution of culture, highlighting the social and symbolic dimensions of human life.

Social Animals

Species that interact highly with one another within their community, exhibiting complex social structures and behaviors.