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Prepare journal entry to record the development cost

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Early in 2016, Simons Co. began developing a new software package to be marketed. The project was completed in December 2016 at a cost of $17 million. Of this amount, $14 million was spent before technological feasibility was established. Simons expects a useful life of five years for the new product with total revenues of $20 million. During 2017, revenue of $6 million was recognized.

The company uses IFRS. Prepare a journal entry to record the 2016 development costs.      

Calculate the required amortization for 2017.

Reference no: EM13864547

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