Write a bussiness letter that summarizes the general rules for capitilazing software development costs using USA GAAP and IFRS

39ow Class Writing Assignment Intangibles Spacecraft Sotware, Ine.i Duning January 201S, Spacecraft Software, Inc. (s8I), a well established and well-funded software June 30, 2016, 88I completed all planning, designing, codding and testing activities that are company, tngan researching and developing new and innov ntive-oftware prograrn for aircraft design to sell to its existing customers through its sales force necessary to establish that a product can be produced to meet its design specifications, including fearures and technical performance requirements. Also at that date, SSI had determined that all high-risk uncertainty issues had been resolved. By August 31, 2016, sSI had developed a business plan, including identification of a ready market for the product, and a commitment of resources to ready the product for market On December 31, 2016, the software summary of costs folows is ready for market and a marketing launch event is held. A Traeked costs Internal RaD costs- January 2015 through June 2016 Internal R&D costs- July through August 2016 Internal RaD costs- September through December 2016 Preproduction costs (not incurred in the design, construction and testing of pre-production or pre-use prototypel $100,000 S 80,000 $250,000 s 40,000 S 25,000 Marketing launch SSI is led by Dr. Pat Hilliard, a rather unusual aerospace engineer with a serious interest in computer science. Dr. Hilliard is brilliant but is in no way an accountant. As an engineer and scientist, he has a strong proclivity toward supporting all conclusions with citations from whatever guidance is available Required Assume you work for a regional CPA firm, Bowers &Bowers LLP, and that SSI is one of your clients. Prepare a letter to Dr. Hilliard that summarizes the general rules for capitalizing software development costs using US GAAP and IFRS. Include application of the rules to the costs described above. Use the following table in your letter. The table is available on Blackboard in Course Documents if you wish to copy it into your letter This case is adapted from an EY case