(Solution) - Accounting for Computer Software Costs Majoli Inc has capitaliz -(2025 Original AI-Free Solution)

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Accounting for Computer Software Costs Majoli Inc. has capitalized computer software costs of $3,900,000 on its new ?Trenton? software package. Revenues from 2010 (first year) sales are $2,000,000. Additional future revenues from ?Trenton? for the remainder of its economic life, through 2014, are estimated to be $10,000,000.
(a) What method or methods of amortization are to be applied in the write-off of capitalized computer software costs?
(b) Compute the amount of amortization for 2010 for ?Trenton.?