Exercise $10-31($Algo$)$ Software development costs $[$LO$10-8]$

Early in $2024,$ the Excalibur Company began developing a new software package to be marketed. The project was

completed in December $2024$ at a cost of $$10$ million. Of this amount, $$5$ million was spent before technological

feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $$14$

million. During $2025,$ revenue of $$7$ million was recognized.

Required: