The following is in software package in the first year of product life. 2 formation related to the development of a particular DEVELOPMENT COSTS FOR SOFTWARE PACKAGE Development costs before reaching technological feasibility Development costs after reaching technological feasibility Costs of duplicating salable product* Estimated revenues over 3 year total product life Revenue in the first year of product life ** 400 600 900 30,000 15,000 This represents the entire inventory expected to be sold over the three year period. What is the total expense related to this software package to be recognized in its first year? (a) $1,150 (b) $1,200. (c) 700. (d) $1,600. The following is in software package in the first year of product life. 2 formation related to the development of a particular DEVELOPMENT COSTS FOR SOFTWARE PACKAGE Development costs before reaching technological feasibility Development costs after reaching technological feasibility Costs of duplicating salable product* Estimated revenues over 3 year total product life Revenue in the first year of product life ** 400 600 900 30,000 15,000 This represents the entire inventory expected to be sold over the three year period. What is the total expense related to this software package to be recognized in its first year? (a) $1,150 (b) $1,200. (c) 700. (d) $1,600