Question
Cebrex Software began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for release to customers
Cebrex Software began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to June 30, 2021, were $1,400,000 and costs incurred from June 30 to the product release date were $3,200,000. The economic life of the software is estimated at four years. For what amount will software be capitalized in 2021?
$ 0
$1,400,000
$ 5,600,000
$ 3,200,000
During 2021, Prospect Oil Corporation incurred $4,000,000 in exploration costs for each of 15 oil wells drilled in 2021. Of the 15 wells drilled, 10 were dry holes. Prospect uses the successful efforts method of accounting. Assuming that Prospect depletes 70% of the oil discovered in 2021, what amount of these exploration costs would remain in its 12/31/2021 balance sheet?
$ 20,000,000
$ 42,000,000
$6,000,000
$ 14,000,000
Help Please.
Thank you
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