10 of 10 Early in year 1, the Carlbury Company began developing a new software package to be marketed. The project was completed in December, year 1, at a cost of $15 million. Of this amount, $10 million was spent before technological feasibility was established. Carlbury expects a useful life of five years for the new product with total revenues of $25 million. During year 2, revenue of $10 million was recognized. Required: 1. Prepare a journal entry to record the year 1 development costs. 2. Calculate the required amortization for year 2. 3. At what amount should the computer software costs be reported in the December 31, year 2, balance sheet? OPEN IN