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Gamekeepers Inc. was a company that developed and marketed software games. It was growing very fast and investing furiously in software development.

Details for the past three years are given below:

Gamekeepers Inc. capitalized software development after technical feasibility was achieved and amortized this over a period not exceeding $24$ months. Based

on the data given, what was the estimated amount of Software Development Cost incurred during Years $-2$ to Year $0?$

a$.$ $$22,$$$99,$$$194$ million

b$.$ $$48,$$$81,$$$119$ million

c$.$ $$70,$$$180,$$$312$ million

d$.$ $$66,$$$154,$$$280$ million

e$.$ None of the aboveGamekeepers Inc. was a company that developed and marketed software games. It was growing very fast and investing furiously in software development. Details for the past three years are given below:

$ Millions

Year $-3$

Year $-2$

Year $-1$

Year $0$

Income Statement

Revenues

$66$

$159$

$248$

Cost of Goods Sold

$(11)$

$(22)$

$(28)$

Software Development Cost

$(48)$

$(81)$

$(119)$

Selling & General Admin

$(31)$

$(65)$

$(90)$

Operating Profit

$(24)$

$(9)$

$11$

Balance Sheet

Capitalized Software Development Cost

$22$

$44$

$143$

$337$

Gamekeepers Inc. capitalized software development after technical feasibility was achieved and amortized this over a period not exceeding $24$ months. Based on the data given, what was the estimated amount of Software Development Cost incurred during Years $-2$ to Year $0?$

a$.$

$ $22,$ $ $99,$ $ $194$ million

b$.$

$ $48,$ $ $81,$ $ $119$ million

c$.$

$ $70,$ $ $180,$ $ $312$ million

d$.$

$ $66,$ $ $154,$ $ $280$ million

e$.$

None of the above

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