On january 1, year 1, a company with a calendar year end began developing a software program that it intends to market and sell to its customers. the software coding was completed on march 31, year 1, at a cost of $200,000, and the software testing was completed on june 30, year 1, at a cost of $100,000. the company achieved technological feasibility on july 31, year 1, at which time the company began producing product masters at a cost of $125,000. what amount should the company report for the total research and development expense for the year ended december 31, year 1?

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.