Computer software costs should be expensed

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Reference no: EM13134481

Logan Company incurred $3,000,000 ($800,000 in 2009 and $2,200,000 in 2010) to develop a computer software product. $1,000,000 of this amount was expended before technological feasibility was established in early 2010. The product will earn future revenues of $8,000,000 over its 5-year life, as follows: 2010 – $2,000,000; 2011 – $2,000,000; 2012 – $1,600,000; 2013 – $1,600,000; and 2014 – $800,000. What portion of the $3,000,000 computer software costs should be expensed in 2010?

Reference no: EM13134481

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