Use the following information for questions
Jessup Corp.will acquire a controlling stake in the outstanding shares of Parasol Inc.for
$9.2 million in cash.
-Mouse Software Company has capitalized computer software costs of $3.6 million related to its spreadsheet product.The software is expected to have a four-year economic life and generate future revenues of $25 million.Revenues generated by this software during 2010 (first year) amounted to $7.5 million.The proper amount of software costs amortized to be recognized by Mouse in 2010 should be
A)$900,000.
B)$3,600,000.
C)$2,812,000.
D)$1,080,000.

Question

Use the following information for questions 
Jessup Corp.will acquire a controlling stake in the outstanding shares of Parasol Inc.for
$9.2 million in cash.
-Mouse Software Company has capitalized computer software costs of $3.6 million related to its spreadsheet product.The software is expected to have a four-year economic life and generate future revenues of $25 million.Revenues generated by this software during 2010 (first year) amounted to $7.5 million.The proper amount of software costs amortized to be recognized by Mouse in 2010 should be
A)$900,000.
B)$3,600,000.
C)$2,812,000.
D)$1,080,000.

Quizplus · Accepted Answer

The Answer of Use the following information for questions 
Jessup Corp.will acquire a controlling stake in the outstanding shares of Parasol Inc.for
$9.2 million in cash.
-Mouse Software Company has capitalized computer software costs of $3.6 million related to its spreadsheet product.The software is expected to have a four-year economic life and generate future revenues of $25 million.Revenues generated by this software during 2010 (first year) amounted to $7.5 million.The proper amount of software costs amortized to be recognized by Mouse in 2010 should be
A)$900,000.
B)$3,600,000.
C)$2,812,000.
D)$1,080,000.

Use the Following Information for Questions