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Marrrta [24]
2 years ago
6

Axcel 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 $3,200,000, and costs incurred from june 30 to the product release date were $1,400,000. the 2022 revenues from the sale of the new software were $4,000,000, and the company anticipates additional revenues of $6,000,000. the economic life of the software is estimated at four years. amortization of the software development costs for the year 2022 would be:
Business
1 answer:
Neporo4naja [7]2 years ago
5 0

The amortization of the software development costs for the year 2022 would be $5,60,000.

<h3>What is Amortization?</h3>

Amortization is the process of repaying a debt in equal amounts over time. A portion of each payment is applied to the loan principal, while the remainder is applied to interest.

When a mortgage loan is amortized, the amount paid toward principal begins small and steadily increases month after month.

<u>Computation</u>:

According to the given information,

The revenues of 2022 from the sale of new software(Sales Revenue)= $4,000,000.

Anticipated Additional Revenues = $6,000,000

Then, the total revenue is :

\text{Total Sales} = \text{Sales Revenue + AAR}\\\\\text{Total Sales} = \$4,000,000+ \$6,000,000\\\\\text{Total Sales} = \$10,000,000

Then, the percentage of Total Revenue would be:

\text{Percentage of Total Revenue} = \dfrac{\text{Sales Revenue}}{\text{Tota Revenue}}\\\\\text{Percentage of Total Revenue} = \dfrac{\$4,000,000}{\$10,000,000}\\\\\text{Percentage of Total Revenue} = 40\%

Then, the Cost incurred from June to the date of product release =

Therefore, the amortization of the software development costs for the year 2022:

=\text{Cost incurred to product release} \times \text{percentage of Total Revenue}\\\\=\$1,400,000 \times 40\% \\\\=\$5,60,000

Learn more about the Amortization, refer to:

brainly.com/question/24232991

$SPJ1

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Answer:

scenario planning and scenario analysis.

Explanation:

Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.

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Contingency planning is also known as scenario planning and scenario analysis.

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2 years ago
Exercise 11-13A Calculate financing cash flows (LO11-5) Dristell Inc. had the following activities during the year (all transact
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The net cash flows from financing activities is -$45,000

Explanation:

The computation of the net cash flows from financing activities is shown below:

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= $160,000 - $75,000 - $40,000 - $90,000

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3 years ago
Different investments have different levels of ___________ (savings, risk, or interest) and offer different rates of return. For
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Using a large value for order k in the moving averages method is effective in
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The correct answer is A that is smoothing out the random fluctuations.

Explanation:

The higher values of K states the greater number of the values which need to be consider for forecasting.

When consider or taking the larger or the higher value of the irregular fluctuation which could be decreased or reduced.

And as a consequence, the large value of K will be used for smoothing of the random fluctuations.

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3 years ago
A newly issued bond has a maturity of 10 years and pays a 7.7% coupon rate (with coupon payments coming once annually). The bond
Sliva [168]

The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.                                                                                                      

<u>Explanation</u>:

  • A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
  • The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
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