Accounting for Software Development Costs

During Year $1,$ PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $$3,000,000,$ of which $40\%$ occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January $1$ of Year $2.$ During Year $2,$ revenues from sales of the product totaled $$4,800,000.$ The product is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $$20,000,000.$

Required

a$.$ Prepare the journal entry to account for the development of this product in Year $1.$

b$.$ Prepare the journal entry to record the amortization of capitalized computer software development costs in Year $2.$

c$.$ What disclosures are required in Year $2$ financial statements regarding computer software costs?

d$.$ Suppose this product were developed for internal use. How would the answers to $($a$),($b$),$ and $($c$)$ change?