In 2019, eGames spent $8,000,000 developing new software. Of this amount,$5,300,000 was spent before July 2019—when technological feasibility was established. The product was marketedto consumers beginning in September 2019. eGames estimates total revenue of $20,000,000 to be earnedduring the software’s three-year life (calculated from the September 1 product release date). During 2019, revenueof $10,000,000 was recognized.Required:1. Prepare the 2019 journal entries to record the development costs.2. Compute the amount of amortization to be recognized in 2019 and prepare the appropriate journal entry, ifany.3. Next Level What is the justification for treating software development costs differently from R&D costs?

Early in 2024, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2024 at a cost of $15 million. Of this amount, $11 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $20 million. During 2025, revenue of $6 million was recognized. Required: Prepare a journal entry to record the 2024 development costs.

During 2024, a software company incurred development costs of $2,000,000 related to a new software project. Of this amount, $400,000 was incurred after technological feasibility was achieved. The project was completed in the middle of the year and the product was available for release to customers on July 1. Revenues from the sale of the new software in 2024 were $500,000 and the company anticipated future additional revenues of $4,500,000. The economic life of the software is estimated at four years. What is amortization in 2024?

Suppose a company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense?   Multiple Choice   Evenly over the period 2022-2026.   Full amount in 2026.   Evenly over the period 2021-2025.   Full amount in 2021.

Cullumber Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $321,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. 1). The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $111,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,250. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. 2). In 2021, the company successfully defends the patent in extended litigation at a cost of $41,600, thereby extending the patent life to December 31, 2028. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2021.

A company began a new software development project in 2023. The project reached technological feasibility on June 30, 2024, and was available for release to customers at the beginning of 2025. Development costs incurred prior to June 30, 2024, were $3,260,000 and costs incurred from June 30, 2024, to the product release date were $1,460,000. The economic life of the software is estimated at four years. For what amount will software be capitalized in 2024?

A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.

Early in 2019, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2019 and was completed on December 31, 2019. Dobbs made the following payments to Kiner, Inc. during 2019: Date Payment June 1, 2019 August 31, 2019 December 31, 2019 $2,000,000 3,000,000 2,550,000 In order to help finance the construction, Dobbs issued the following during 2019: 1. $1,700,000 of 10-year, 9% bonds payable, issued at par on May 31, 2019, with interest payable annually on May 31. 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2019. 2. In addition to the 9% bonds payable, the only debt outstanding during 2019 was a $425,000, 12% note payable dated January 1, 2013 and due January 1, 2023, with interest payable annually on January 1. Compute the amounts of each of the following (show computations) 1. Weighted-average accumulated expenditures qualifying for capitalization of…

Yellow Ltd's accounting profit for the year of assessment 2019/20 is $1,900,000, after charging the following item: Payment for early termination of lease of office, with 5 more years to run to termination: $1,000,000. The termination was driven by the decision to move to a bigger office. In addition, the company also made a payment of $100,000 for purchase of computer hardware and software during the year. Yellow Ltd's assessable profit for the year: Select one: a. $1.9 million. b. $3 million. c. None of the above. d. $2.8 million. O

Novak, Inc. began work on a $ 6,466,000 contract in 2020 to construct an office building. During 2020, Novak, Inc. incurred costs of $ 1,547,340, billed its customers for $ 1,085,000, and collected $ 1,013,000. At December 31, 2020, the estimated additional costs to complete the project total $ 3,003,660.Prepare Novak’s 2020 journal entries using the percentage-of-completion method