Early in 2021, the Excalibur Company began developing a new software package to be marketed....
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Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $60 million. Of this amount, $40 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $100 million. During 2022, revenue of $30 million was recognized.
Required: 1. Prepare a journal entry to record the 2021 development costs.
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