Green Earth Corp. has capitalized software costs of $980,000 on a product to be sold externally. During its first year, sales of this product totalled $380,000. Green Earth expects to earn $1,560,000 in additional future revenue from this product, which is estimated to have an economic life of four years. Calculate the amount of software amortization, assuming that amortization is based on the pattern in which Green Earth receives benefits from the software program.
Answer to relevant QuestionsLatupatula Corporation purchased a patent from MaFee Corp. on January 1, 2014, for $87,000. The patent had a remaining legal life of 16 years. Prepare Latupatula's journal entries to record the 2014 patent purchase and ...Use the data provided in BE12-16, except assume that useful life is expected to be unlimited. How would your response change if ABC reports under (a) ASPE (b) IFRS In exercise ABC Company has a trademark with a carrying ...Azure Industries Ltd. acquired two copyrights during 2014. One copyright was on a textbook that was developed internally at a cost of $ 18,000. This textbook is estimated to have a useful life of three years from September ...Safe Ride Incorporated applied for several taxi licences for its taxicab operations in the City of Waterford and, on August 31,2014, incurred costs of$14,200 in the application process. The outcome of applying for taxi ...On July 1, 2014, Zoe Corporation purchased the net assets of Soorya Company 10) by paying $415,000 cash and issuing a $50,000 note payable to Soorya Company. At July 1, 2014, the statement of financial position of Soorya ...
Post your question