Very early in 20X3, while developing software for sale to others, after achieving technological feasibility but before the commencement of commercial production, X Company incurred $320,000 to produce product masters and to test the software. X Company estimated that the software will be sold for a total of 10 years. After nearly a full year of selling, X had revenues from software sales of $120,000 in 20X3. Sales in future periods are expected to amount to $680,000. Costs associated with producing and packaging the software approximate 10% of revenues. What portion, if any, of the $320,000 will be recognized in income in 20X3?