Yellow co. spent $12,000,000 during the current year developing its new software package. of this amount, $4,000,000 was spent before it was at the application development stage and the package was only to be used internally. the package was completed during the year and is expected to have a 4-year useful life. yellow has a policy of taking a full-year’s amortization in the first year. after the development stage, $50,000 was spent on training employees to use the program. what amount should yellow report as an expense for the current year?

devopment expense                                   4,000,000

software package depreicaiton expense 2,000,000

training employees expense                          50,000

Total expenses                                            6,050,000

Explanation:

the cost before the knowledge of future benefit will come for the development of the software  is treated as expense. The reasoning behind this is the potential uncertainty about the furture at this time. The company didn't know about the likelihood of future benefits.

The toher 8,000,000 million will be amortize over a 4-year period:

8,000,000 / 4 = 2,000,000 depreciation expense

The training wil be considered expense for the period.

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b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.