Question: Satyam Company has created a new software application for PCs. Its costs during research and development were $500,000. Its costs after the working program was

Satyam Company has created a new software application for PCs. Its costs during research and development were $500,000. Its costs after the working program was developed were $350,000. Although the companys copyright may be amortized over 40 years, management believes that the product will be viable for only 5 years. How should the costs be accounted for? At what value will the software appear on the balance sheet after 1 year?

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