Prepare the journal entry to record software cost

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MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product's economic life of 5 years.

Instructions

Question 1: Prepare the journal entry to record software cost amortization for the first year. Show all computations.

Reference no: EM132553465

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