Question: LookAtMyFace Corp. develops computer software to aid in facial recognition to be used in secure credit card transactions. Research began on January 1, 2018 and
LookAtMyFace Corp. develops computer software to aid in facial recognition to be used in secure credit card transactions. Research began on January 1, 2018 and continued to June 30, 2019. During that time the company spent $1.5 million. On July 1, 2019 the company determined that software was technologically feasible and they could have commercially ready software available on January 1, 2020. Between July 1 and December 31, 2019 the company spent an additional $1,200,000 to develop the software. The company expects the software to have a 4 year life and forecast the following sales numbers: $2.8 million in 2020, $4.7 million in 2021, $6 million in 2022 and $2.5 million in 2023. How much amortization expense will LookAtMyFace recognize in 2020
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