On january 1, 2020 okinawa company had capitalized cost of 8,000,000 for a new computer software product with an economic life of 4 years. The contract term for this software with client is 5 years. Sales for 2020 for the software product amounted to 4,000,000 the total sales of the software over its economic life are expected to be 20,000,000. however the pattern of the future sales from the computer software cannot be determined reliably.

What is the amortization expense to be reported in the statement of profit or loss for the year 2020?

1. 4000000

2. 2000000

3. 1600000

4. 5000000