4. During the year, the company purchased the rights to develop an app based on the quarterback winning the Superbowl in 2020. SPI paid $175,000 for this exclusive right, and incurred an additional $275,000 in programming costs to create the app. SPI capitalized $450,000 as an intangible asset. The following are the expected downloads for the game, which will be sold for $4.99. Downloads . Probability Year 1 Year 2 Year 3 Optimistic 15% 120,000 100,000 75,000 Average 65% 90,000 50,000 30,000 Pessimistic 20% 60,000 20,000 10,000