Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks
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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 :
Then, the percentage of Total Revenue would be:
Then, the Cost incurred from June to the date of product release =
Therefore, the amortization of the software development costs for the year 2022:
Learn more about the Amortization, refer to:
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