During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures

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During 2020, PC Software Inc. developed a new personal computer
database management software package. Total expenditures on the
project were $2,400,000, of which 40% occurred after the
technological feasibility of the product had been established. The
product was completed and offered for sale on January 1, 2021.
During 2021, revenues from sales of the product totaled $3,840,000.
The package is expected to be successfully marketable for five
years, and the total revenues over the life of the product are
estimated to be $16,000,000.
Required
a. Prepare the journal entry to account for the
development of this product in 2020.
b. Prepare the journal entry to record the
amortization of capitalized computer software development costs in
2021.
c. What disclosures are required in the December
31, 2021, financial statements regarding computer software costs?
Enter the missing items from the following note disclosure.
At December 31, 2021, the unamortized software intangible asset
totals $Answer
This is equal to $Answer originally capitalized less
amortization in 2021 of $Answer
The amount charged to expense as amortization of software
intangible asset in 2021 was $Answer
The estimated net realizable value of computer software is greater
than the remaining unamortized software intangible asset.
d. Suppose this product were developed for internal
use. How would your answers to (a),
(b), and (c) change?