Assuming that the company is a Small/Medium entity, what is the total expense to be recognized...

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Assuming that the company is a Small/Medium entity, what is the total expense to be recognized in the 2020 income statement in relation to the internally general intangibles? Saligumba Company is an established computer software entity. In 2019, the entity incurred the following costs in the process of designing, developing and producing a new software program using the Apple technology to access the Internet: Designing and planning Code development Testing Production of product master 1,000,000 1,500,000 500,000 2,500,000 The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. In 2020, the entity incurred P1,000,000 to produce the software program for sale in 2020. The entity began marketing the software program in 2020 and earned revenue of P2,400,000. The entity has estimated that total revenue over the 4-year life of the product would be P12,000,000. At the end of 2020, the entity was offered P4,000,000 for the rights to distribute the software. Questions: 1. How much is the Research and Development cost at year-end? 2. How much is the capitalized software at year-end? 3. Amortization of software at year-end is During the current year, Mary Grace Company incurred costs to develop and produce a routine, low-risk computer software product. Completion of detailed program design Cost incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility 1,300,000 1,000,000 2,400,000 2,000,000 1,500,000 2,500,000 900,000 Other testing costs after establishment of technological feasibility Cost of producing product masters for training materials Duplication of computer software and training materials from product masters (1,000 units) Packaging product (500 units) Questions: 1. In the year-end statement of financial position, what amount should be reported in inventory? Assuming that the company is a Small/Medium entity, what is the total expense to be recognized in the 2020 income statement in relation to the internally general intangibles? Saligumba Company is an established computer software entity. In 2019, the entity incurred the following costs in the process of designing, developing and producing a new software program using the Apple technology to access the Internet: Designing and planning Code development Testing Production of product master 1,000,000 1,500,000 500,000 2,500,000 The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. In 2020, the entity incurred P1,000,000 to produce the software program for sale in 2020. The entity began marketing the software program in 2020 and earned revenue of P2,400,000. The entity has estimated that total revenue over the 4-year life of the product would be P12,000,000. At the end of 2020, the entity was offered P4,000,000 for the rights to distribute the software. Questions: 1. How much is the Research and Development cost at year-end? 2. How much is the capitalized software at year-end? 3. Amortization of software at year-end is During the current year, Mary Grace Company incurred costs to develop and produce a routine, low-risk computer software product. Completion of detailed program design Cost incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility 1,300,000 1,000,000 2,400,000 2,000,000 1,500,000 2,500,000 900,000 Other testing costs after establishment of technological feasibility Cost of producing product masters for training materials Duplication of computer software and training materials from product masters (1,000 units) Packaging product (500 units) Questions: 1. In the year-end statement of financial position, what amount should be reported in inventory?

Answer rating: 100% (QA)

1 Total RD cost 3000000 2 How much is capitalized as software Production of product master 2500000 3 ... View the full answer