Garfunkel, Inc. has incurred $6 million in developing a computer software product for sale to third parties.
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Garfunkel, Inc. has incurred $6 million in developing a computer software product for sale to third parties. Of the $6 million costs incurred, $4.5 million is capitalized. The product produced from this development work has generated $2 million of revenue in 2010 and is anticipated to generate another $8 million in future years. The estimated useful life of the project is 4 years. How much of the capitalized costs should be amortized in 2010?
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Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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