What happens to each company’s net income if sales increase by 30%?
1 answer:
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Answer:
net capitalized cost is = $450000
so correct option is b. $450,000
Explanation:
given data
capitalized software costs = $600,000
expected total sales = 10%
sale = 4 year
net realizable value = $480,000
solution
we find out net capitalized cost of computer software that is
net capitalized cost of computer software is = Year 1 balance - Year 2 amortization ........................1
here we get first Year 2 amortization that is
Year 2 amortization is = capitalized software costs ÷ total projected sale ..............2
put here value
Year 2 amortization =
Year 2 amortization is = $150,000
so here we get net capitalized cost
net capitalized cost is = $600,000 - $150,000
net capitalized cost is = $450000
so correct option is b. $450,000