Reference no: EM132700749

Problem 1: During the current year, Muller Company incurred costs to develop and produce a routine, low-risk computer software. Costs incurred for coding and testing to establish technological feasibility 2,000,000; Other coding costs after establishment of technological feasibility 4,800,000; Costs of producing product masters for training materials 3,000,000; Duplication of computer software and training materials from product masters 5,000,000; Completion of detailed program design 2,600,000; Other testing costs after establishment of technological feasibility; Packaging product 1,000,000. The computer software which is not for sale can be used for five years. What is the annual amortization, if any, of the Intangible asset?