In 2014, Xenex Market Services Began Development of a Customer

question 25

Multiple Choice

In 2014, Xenex Market Services began development of a customer management software package for their own internal use and incurred $40,000 costs related to conceptual formulation of design alternatives. In 2015, management agreed to fully fund development of the software and spent $120,000 in development costs. In 2016, development was completed after incurring an additional $160,000 in development costs plus another $ 60,000 was spent on training costs for using the software. In 2017, the company started using the software and began amortizing related costs over a 10-year expected useful life. What is the amount of amortization expense for 2017 for this internally-developed software?

• A) $28,000
• B) $32,000
• C) $34,000
• D) $38,000

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Definitions:

Marital Tiff

A minor argument or disagreement between married partners.

Postrefusal Sexual Persistence

Continued requests for sexual contact after being refused.

Pursuit

The act of striving or searching for something, often with determination to achieve a specific goal or satisfy a need or desire.