On January 1, 20x2, Biotech Research Entity (BRE) made a breakthrough in its genetic research project. One of the results is an idea to create a genetic decoding software package. After six months of testing, BRE establishes technical feasibility on July 1, 20x2. BRE rolled out the prototype of the software on January 1, 20x3. By March 1, 20x3, BRE had developed a business plan showing all the resources needed to complete development, its ability to secure those resources and a ready market for the software. The project was ready for launch by January 1, 20x4. During the month of December 20x3, BRE launched a marketing campaign to publicize the new software package. The following table shows the timeline of expenditures made on the project. Determine which costs can be capitalized as development costs.

Expenditure	Date of Expenditure	Amount
Internal R & D expenditure	JanuaryDecember 20X1	$1,000,000
Internal R & D expenditure	JanuaryJune 20X2	500,000
Internal R & D expenditure	July 20X2February 20X3	2,000,000
Internal R & D expenditure	MarchDecember 20X3	2,5000,000
Marketing costs	December 20X3	750,000