During $2024,$ the Balboa Software Company incurred development costs of $\backslash (\backslash$$ $2,000,000\backslash )$ related to a new software project. Of this amount, $\backslash (\backslash$$ $400,000\backslash )$ was incurred after technological feasibility was achieved. The project was completed in the middle of the year and the product was available for release to customers on July $1.$ Revenues from the sale of the new software in $2024$ were $\backslash (\backslash$$ $500,000\backslash )$ and the company anticipated future additional revenues of $\backslash (\backslash$$ $4,500,000\backslash ).$ The economic life of the software is estimated at four years. What amount of the software development costs would be capitalized in $2024($ignore amortization$)?$

Multiple Choice

$\backslash$$$400,000$

$\backslash$$$1,600,000$

$\backslash$$$2,000,000$

$\backslash$$$0$