In 2017, Walters Communication had the following cash outflows:1.$218,000 in salaries to pay employees who were trying to identify new materials that could be used to create faster Internet speeds.2.$142,000 in raw materials used to

prototype of a new cable system that would make Internet speeds 3x faster.3.$72,000 in marketing and sales for the new cable system.4.$3.4 million to install new Internet cables in three major cities.5.$87,000 in application and other fees associated with obtaining a patent for their new Internet technology.

How much will Walters Communication capitalize as part of the new cable system?

• A
• :
• $87,000
• B
• :
• $447,000
• C
• :
• $3,847,000
• D
• :
• $3,487,000