Capitalized costs are not immediately expensed; instead, they are depreciated or amortized over time. To better align the cost of using an asset with the period of time during which the asset is producing income, the entities capitalized their costs. The amount capitalized as software development cost.

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Chapter 10, Problem 10.18BE

To determine

Introduction: Capitalized costs are not immediately expensed; instead, they are depreciated or amortized over time. To better align the cost of using an asset with the period of time during which the asset is producing income, the entities capitalized their costs.

The amount capitalized as software development cost.

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