Early in Year 1, a company began developing a new product to be marketed. The product development was completed in December Year 1 at a cost of $108 million. Of this amount, $72 million was spent before product feasibility was established. The company expects a useful life of five years for the new product with total revenues of $180 million. During Year 2, revenue of $54 million was recognized.

Required: 1. Prepare a journal entry to record the Year 1 development costs. 2. Calculate the required amortization for Year 2.

3. Determine the amount to report for the computer software costs in the December 31, Year 2, balance sheet. DE

Early in Year 1, a company began developing a new product to be marketed. The product development was completed in December Year 1 at a cost of $108 million. Of this amount, $72 million was spent before product feasibility was established. The company expects a useful life of five years for the new product with total revenues of $180 million. During Year 2 , revenue of $54 million was recognized. Required: 1. Prepare a journal entry to record the Year 1 development costs. 2. Calculate the required amortization for Year 2 3. Determine the amount to report for the computer software costs in the December 31 , Year 2 , balance sheet Complete this question by entering your answers in the tabs below. Calculate the required amortization for Year 2. Note: Enter your answers in whole dollars, and not in millions