Question: On December 31, 2009, Byte Co. had capitalized software costs of $600,000 with an economic life of four years. Sales for 2010 were 10% of

On December 31, 2009, Byte Co. had capitalized software costs of $600,000 with an economic life of four years.

Sales for 2010 were 10% of expected total sales of the software.

At December 31, 2010, the software had a net realizable value of $480,000. In its December 31, 2010 balance sheet, what amount should Byte report as net capitalized cost of computer software?

a. $432,000

b. $450,000

c. $480,000

d. $540,000

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