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Danya Company has created a new software application for PCs. Its costs during development and research were $250,000. Its costs after the working program was developed were $175,000. Although the company's copyright can be amortized over 40 years, management believes that the product may be viable for only 5 years. How could the costs be accounted for? At what value may the software appear on the balance sheet after 1 year?
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