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In: Accounting

SS Inc. begins to develop a computer software program that can be sold to the public....

SS Inc. begins to develop a computer software program that can be sold to the public. During the current year, costs of $270,000 are incurred to arrive at the point of technological feasibility (a working model is available). Another $130,000 is then spent to turn that working model into a product that can be sold. Which of the following statements is true?

A)$400,000 should be recorded as an expense in this year.

B)$400,000 should be recorded as an asset to be reported on the company's balance sheet.

C)$270,000 should be recorded as an asset and the $130,000 should be recorded as an expense.

D)$270,000 should be recorded as an expense and the $130,000 should be recorded as an asset.

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ekkarill92 answered 1 year ago
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