Question: Exercise 12-11 During 2017, Sandhill Enterprises Ltd., a private entity, incurred $4.5 million in costs to develop a new software product called Dover. Of this

Exercise 12-11 During 2017, Sandhill Enterprises Ltd., a private entity, incurred $4.5 million in costs to develop a new software product called Dover. Of this amount, $1.6 million was spent before establishing that the product was technologically and financially feasible. Dover was completed by December 31, 2017, and will be marketed to third parties. Sandhill expects a useful life of 6 years for this product, with total revenues of $14 million. During 2018, Sandhill realized revenues of $2.0 million from sales of Dover. Assuming Sandhill reports under ASPE, prepare the journal entries that are required in 2017 to record the above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Research and Development Expense 1600000 Cash 1600000 (To record cost incurred on research and development) Software 2900000 Cash 2900000 (To record costs associated with intangible assets)

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