Axcel Software Began a New Development Project in 2015

question 43

Multiple Choice

Axcel Software began a new development project in 2015.The project reached technological feasibility on June 30,2016,and was available for release to customers at the beginning of 2017.Development costs incurred prior to June 30,2016,were $3,200,000 and costs incurred from June 30 to the product release date were $1,400,000.The 2017 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.2017 amortization of the software development costs would be:

• A)$0.
• B)$ 350,000.
• C)$1,840,000.
• D)$ 560,000.

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Definitions:

Meaningful Data

Information that is relevant, significant, and useful in decision-making processes or in deriving insights.

Organize

The act of arranging or systematizing elements in a structured manner to achieve a specific purpose or result, often related to tasks, events, or data.

Computer Competency

The ability to effectively use computer software and hardware to perform various tasks.

Computers

Electronic devices that process, store, and retrieve data, allowing users to perform a wide range of tasks efficiently.