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On December 31, Year 1, Byte Co. had capitalized software costs of $600,000 with an economic life of four years. Sales for Year 2 were 10% of expected total sales of the software. At December 31, Year 2, the software had a net realizable value of $480,000. In its December 31, Year 2 balance sheet, what amount should Byte report as net capitalized cost of computer software?
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