Problem 48-22 (AICPA Adapted) s during Futile Company is an established computer software entity. In 2017, the entity incurred the following costs in the process of designing, developing and producing a new software program using the APPLE technology to access the Internet: .000,000 Designing and planning Code development 750,000 Testing 1,000,000 Production of product master 1,500,000 500,000 income 2,500,000 lopment The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. In 2018, the entity incurred P1,000,000 to produce the software program for sale in 2018. The entity began marketing the software program in 2018 and earned revenue of P2, 400,000. The entity has estimated that total revenue over the 4-year v tablet life of the product would be P12,000,000. ident it 1. What is the research and development expense in 2017? of the a. 3,000,000 b. 5,500,000 c. 2,500,000 litional d. 1,000,000 became 2. What amount should be capitalized as software cost? 750,000 a. 4,500,000 end of b. 2,500,000 C. 3,500,000 d. 4,000,000 3. What total amount should be recognized as expense in 2018? a. 1,000,000 b. 1,625,000 C. 1,500,000 d. 3,500,000 1545