Dumb question but I am trying to get my head around software development expenses and how it's recognized throughout the 3 statements when only a portion of the expense is capitalized:
1 engineer @ $200k total comp, 60% of salary capitalized for R&D/IDS purposes over 5 year life
$120k expense hits IS on annual basis, $120k * (1-T) to net income
$80k capitalized to balance sheet, $24k amortized in Y1 (no impact on EBITDA), $24k*(1-T) to net income
$200k hit in SCF in Y1
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