Pearl, Inc., develops and markets computer software. During $2013,$ one of Pearl$$s engineers began developing a new and very innovative software product. On July $1,2014,$ a team of Pearl engineers determined that the software product was technologically feasible. Pearl engineers continued to ready the software for general release and in January $2015,$ the first product sales were made. Total costs incurred follow:

$2013$: $$3,200,000$

$2014$: $$3,600,000($evenly throughout the year$)$

Required:

How should Pearl account for the costs incurred during $2013,$ and what is the rationale for your answer?

How should Pearl account for the costs incurred during $2014?$ If your answer differs from your answer in requirement $1,$ explain why