How much must be capitalized as software cost subject

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During 2020, Power Company incurred costs to develop and produce a routine, low-risk computer software product as follows:

Packaging product (500 units) - $90,000;

Duplication of computer software and training materials from product masters (1,000 units) - $250,000;

Completion of detailed program design - $130,000;

Cost of producing product masters for training materials - $150,000;

Other testing costs after establishment of technological feasibility - $200,000;

Costs incurred for coding and testing to establish technological feasibility - $100,000;

Other coding costs after establishment of technological feasibility - $240,000.

Problem 1: How much must be capitalized as software cost subject to amortization in Power Company's December 31, 2020 statement of financial position?

Reference no: EM132895684

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