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Question - Accounting for Computer Software Costs
Majoli Inc. has capitalized computer software costs of $3,633,000 on its new "Trenton" software package. Revenues from 2010 (first year) sales are $2,062,400. Additional future revenues from "Trenton" for the remainder of its economic life, through 2014, are estimated to be $10,312,000.
Compute the amount of amortization for 2010 for "Trenton" using the: Straight-line method and Percent of revenue method.
How much amortization should be recognized for 2010 for "Trenton"?
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