Tech-Guru Inc. begins to develop a computer software program that can be sold to the public.

During the current year, costs of $270,000 are incurred to arrive at the point of technological feasibility (a working model is available).

Another $130,000 is then spent to turn that working model into a product that can be sold.

Which of the following statements is true?

A) $400,000 should be recorded as an expense in this year.

B) $400,000 should be recorded as an asset to be reported on the company's balance sheet.

C) $270,000 should be recorded as an asset and the $130,000 should be recorded as an expense.

D) $270,000 should be recorded as an expense and the $130,000 should be recorded as an asset.