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How much will walters communication capitalize

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Question - In 2017, Walters Communication had the following cash outflows: 1. $218,000 in salaries to pay employees who were trying to identify new materials that could be used to create faster Internet speeds. 2. $142,000 in raw materials used to prototype of a new cable system that would make Internet speeds 3x faster. 3. $72,000 in marketing and sales for the new cable system. 4. $3.4 million to install new Internet cables in three major cities. 5. $87,000 in application and other fees associated with obtaining a patent for their new Internet technology.

How much will Walters Communication capitalize as part of the new cable system?

A: $87,000

B: $447,000

C: $3,847,000

D: $3,487,000

Reference no: EM132190750

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