Case 2 A video game company incurred $50,000 of costs to establish the technological feasibility for a new video game. The firm then incurred $60,000 of costs after establishing technological feasibility. The product was marketed at the beginning of year 2 with an expected 4-year sales life. During year 2, the firm earned $150,000 of sales revenues from the sale of the product . Total estimated revenues for years 3, 4, and 5 are $450,000. (1) How much should the firm capitalize as an intangible asset in year 1? Answer: (2) How much should the firm recognize as an amortization expense for year 2? Answer: (3) What is the book value of the computer software at the end of year 2