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LiRa [457]
3 years ago
7

A company began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was avail

able for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $3,800,000 and costs incurred from June 30 to the product release date were $2,150,000. The 2019 revenues from the sale of the new software were $4,000,000, and the company anticipates additional revenues of $6,500,000. The economic life of the software is estimated at four years. Amortization of the software development costs for the year 2019 would be:
Business
1 answer:
o-na [289]3 years ago
8 0

Answer:

$818,935

Explanation:

Percentage of-revenue method:

$4,000,000

($4,000,000 + 6,500,000) = $10,500,000

Hence;

$4,000,000/$10,500,000

= 38.09 %

Amortization = 38.09% ×$2,150,000

= $818,935

Therefore the amortization of the software development costs would be $818,935

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Which of the following transactions are included in gross domestic product, and by how much does the GDP raise?
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Answer:

A. Smith pays a carpenter $50,000 to build a garage.  ⇒ INCLUDED, increases GDP by $50,000 because Smith paid for the garage.

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C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000.  ⇒ NOT INCLUDED, no services or goods were exchanged, it is the same as growing your own food.

D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.  ⇒ INCLUDED, increases GDP by $500,000 because the Joneses purchased anew house.

E. You purchase a used computer from a friend for $200.  ⇒ NOT INCLUDED, only new goods and services are included.

F. Your university purchases a new mainframe computer from IBM, paying $25,000.   ⇒ INCLUDED, increases GDP by $25,000 because the university purchased a new computer.

G. You win $100 in an Atlantic City casino. ⇒ NOT INCLUDED, casino earnings or lottery earnings are not considered new products or services.

5 0
2 years ago
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KengaRu [80]

Answer:

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Explanation:

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7 0
3 years ago
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Alex17521 [72]

Answer:

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Answer:

<u>increasing real output and reducing unemployment</u>

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The main cause of business cycle is the forces of supply and demand , expectation of future and it availability of the capability may also cause the business cycle.

Economic cycle is another name of Business cycle . Business cycle plays a crucial rule in the economy as it influence the demand of the consumer.

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I believe that the answer is true.
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