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28 Sep 2019
The Elegant software Company recently completed the developmentand testing of new software program that provides the ability totransfer data from among a variety of operating systems. Thecompany believes this product will be quite successful andcapitalized all of the costs of designing, developing, coding, andtesting the software. These costs will be amortized over theexpected useful life the software on a straight-line basis.(chapter 10)
Required:
1. Was Elegant correct in its treatment of the softwaredevelopment costs? Why?
2. Explain the appropriate method for determining the amount ofperiodic amortization for any capitalized software developmentcosts.
The Elegant software Company recently completed the developmentand testing of new software program that provides the ability totransfer data from among a variety of operating systems. Thecompany believes this product will be quite successful andcapitalized all of the costs of designing, developing, coding, andtesting the software. These costs will be amortized over theexpected useful life the software on a straight-line basis.(chapter 10)
Required:
1. Was Elegant correct in its treatment of the softwaredevelopment costs? Why?
2. Explain the appropriate method for determining the amount ofperiodic amortization for any capitalized software developmentcosts.
Jean KeelingLv2
28 Sep 2019