Answer:
amortization expense year 2022 = $560,000
Explanation:
There are two in which you can amortize software development costs, one is straight line method (4 years) and the other is similar to the depletion amortization.
In this case, I believe that depletion amortization is better, since most of the revenues will be generated during the first year or years, but the useful life is much longer.
total expected revenue = $10,000,000
total R&D capitalized costs = $1,400,000
you should amortize $1,400,000 / $10,000,000 = $0.14 per every $1| of revenue:
amortization expense year 2022 = $0.14 x $4,000,000 = $560,000
