On December 31, 2009, Bit Co. had capitalized costs for a new computer software product with an economic life of five years. Sales for 2010 were 30% of expected total sales of the software. At December 31, 2010, the software had a net realizable value equal to 90% of the capitalized cost. What percentage of the original capitalized cost should be reported as the net amount on Bit’s December 31, 2010 balance sheet?
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