You are an audit senior. Your client, Cloudfund Inc., has developed a new software program to enable online donations/pledges. The client wants to capitalize the expenses to date. After reviewing the criteria, you determine that Cloudfund can capitalize its internally generated intangible asset. Cloudfunds controller provides you with the following expense detail:

Description	Expense
Legal fees	$ 2,000
General advertising and promotional costs	10,000
General administration and overhead	3,000
Staff software training	20,000
Cost of materials	25,000
Fees to register legal rights	5,000
Research phase	10,000
Total	$75,000

What is the total amount that is eligible to be capitalized and why?

a) $75,000

b) $62,000

c) $42,000

d) $32,000