Homework Help is Here – Start Your Trial Now!
Business
Accounting
Logan Com pany incurred P3,000,000, (P800,000 in 2024 and P2,200,000 in 2025) to develop a computer software product. P I,000,000 of this amount was expended before technological feasibility was established in early 2025. The product will earn future revenues of P8,000,000 over its 5-year life, as follows: 2025 - P2,000,000; 2026 - P2,000,000; 2027 - Pl,600,000; 2028 - PI,600,000; and 2029 - P800,000 What portion of the P3,000,000 computer software costs should be expensed in 2025?   a. 500,000 b. 600,000 c. 700,000 d. 2,200,000

Logan Com pany incurred P3,000,000, (P800,000 in 2024 and P2,200,000 in 2025) to develop a computer software product. P I,000,000 of this amount was expended before technological feasibility was established in early 2025. The product will earn future revenues of P8,000,000 over its 5-year life, as follows: 2025 - P2,000,000; 2026 - P2,000,000; 2027 - Pl,600,000; 2028 - PI,600,000; and 2029 - P800,000 What portion of the P3,000,000 computer software costs should be expensed in 2025?   a. 500,000 b. 600,000 c. 700,000 d. 2,200,000

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 29P
See similar textbooks
icon
Related questions
Question
Logan Com pany incurred P3,000,000, (P800,000 in 2024 and P2,200,000 in 2025) to develop a
computer software product. P I,000,000 of this amount was expended before technological
feasibility was established in early 2025. The product will earn future revenues of P8,000,000
over its 5-year life, as follows: 2025 - P2,000,000; 2026 - P2,000,000; 2027 - Pl,600,000; 2028 -
PI,600,000; and 2029 - P800,000

What portion of the P3,000,000 computer software costs should be expensed in 2025?
 
a. 500,000
b. 600,000
c. 700,000
d. 2,200,000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
Accounting
ISBN:
9780357391129
Author:
WHITTENBURG
Publisher:
Cengage
SEE MORE TEXTBOOKS