See attached (only need the below answered). What are the relevant issues for this situation, the appropriate financial reporting guidance, and your conclusion regarding the treatment of the fees generated and costs incurred for the software sold in 2019.
Analyze Ms. Larson’s accounting for the CRM System in 2018. Specifically, determine whether her decisions regarding the (1) capitalization versus expensing of costs and (2) amortization of the CRM system are supported by U.S. GAAP. In a written response, please address the specific evidence from the case, relevant guidance from the Financial Accounting Standards Board Accounting Standards Codification, and adjustments, if any, that should be made to the 2018 financial statements.
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