Question

33)cebrex software began a new development project in 2020. the project reached technological feasibility on june 30, 2021, and was available for release to customers at the beginning of 2022. development costs incurred prior to june 30, 2021, were$3,520,000 and costs incurred from june 30 to the product release date were$1,720,000. the economic life of the software is estimated at four years. for what amount will software be capitalized in 2021?

Answer 1

The amount of Software be capitalized in 2021 $1,720,000

What is Technological feasibility?

Technology feasibility and cost benefit analysis is used to evaluate a process or technology's potential economic viability and to decide which technologies have the best chance of becoming successful commercially.

The assessment of the proposed system's technical needs, including its hardware, software, and other components, is part of the technical feasibility process. A technological feasibility study assists organizations in determining if they have the necessary technical resources to develop the concept into an effective, fully operational system.

Development costs incurred prior to June 30, 2021 are to be expensed in 2021 and not to be capitalized.

Only the costs incurred after project reached technological feasibility are to be capitalized.

The amount of Software be capitalized in 2021 $1,720,000

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