Axcel Software Began a New Development Project in 2012

question 118

Multiple Choice

Axcel Software began a new development project in 2012. The project reached technological feasibility on June 30, 2013, and was available for release to customers at the beginning of 2014. Development costs incurred prior to June 30, 2013, were $3,200,000 and costs incurred from June 30 to the product release date were $1,400,000. The 2014 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. 2014 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:

Second Generation

Often refers to the offspring of immigrants in a new country, though it can also denote the subsequent version or iteration of a product or technology.

High Failure Rate

A situation where there is a significant number of attempts or operations that do not achieve the intended outcome or success.

Ethical Failure

A situation where individuals or organizations fail to act in accordance with moral principles, often resulting in harm or breach of trust.

Financial Control

The process of managing a company's financial resources and operations to ensure efficiency, compliance, and profitability.