Question: D5 A4 Flappy Software began a new development project in 2011. The project reached technological feasibility on Sept 30, 2012 and was available for release

D5 A4

Flappy Software began a new development project in 2011. The project reached technological feasibility on Sept 30, 2012 and was available for release to customers at the beginning of 2013. Development costs incurred prior to Sept 30, 2012 were $3,000,000 and costs incurred from Sept 30 to the product release date were $1,200,000. 2013 revenues from the sale of the new software were $4,000,000 and the company anticipates additional revenues of $16,000,000.

REQUIRED: Determine which costs, if any, should be capitalized. What happens to costs not capitalized, if any?

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