Closer & Co. incurred and paid the following costs for internal-use software: $12,000 in the preliminary'

Question:

Closer & Co. incurred and paid the following costs for internal-use software:
• $12,000 in the preliminary' stage of development
• $17,000 in external direct material and service costs used in developing the internal-use software
• $23,000 in payroll costs for employees working on the project
• $3,500 in interest costs while developing the software