Question: Rocco Company has created new apps for mobile phones Its
Rocco Company has created new apps for mobile phones. Its costs during research and development were $375,000. Its costs after the working program was developed were $264,000. Although the company’s copyright may be amortized over 40 years, management believes that the product will be viable for only six years. How should the costs be accounted for? At what value will the apps appear on the balance sheet after one year?
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