Danya company has created a new software application for PCs. Its costs during research and development were

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Danya company has created a new software application for PCs. Its costs during research and development were $250,000. Its costs after the working program was developed were $175,000. Although the company’s copyright may be amortized over 40 years, management believes that the product will be viable for only 5 years. How should the costs be accounted for? At what value will the software appear on the balance sheet after 1 year?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  answer-question

Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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