Early in Year $1,$ a company began developing a new product to be marketed. The product development was completed in December Year $1$ at a cost of $$18$ million. Of this amount, $$12$ million was spent before product feasibility was established. The company expects a useful life of five years for the new product with total revenues of $$30$ million. During Year $2,$ revenue of $$9$ million was recognized.

Required:

Prepare a journal entry to record the Year $1$ development costs.

Calculate the required amortization for Year $2.$

Determine the amount to report for the computer software costs in the December $31,$ Year $2,$ balance sheet.

Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

Determine the amount to report for the computer software costs in the December $31,$ Year $2,$ balance sheet.

Note: Enter your answers in whole dollars, and not in millions.

Net amount reported in balance sheet