At 31 December 2012, Manchester Software Systems Ltd had capitalized software costs of €900 000. The useful life was estimated at four years, with-no residual value. Sales for 2013 were 10% of the total expected sales of the software. At the 2013 year-end, the software had a recoverable amount of €720 000. What amount should Manchester report as the net capitalized software on its 31 December 2013 statement of financial position?

a. €648 000

b. €675 000

c. €720 000

d. €810 000 ACCA adaptedLO1.