Question
Gulf transport company owns a freely transferable bus operators license between Salalah and muscat, which it acquired on 1 July 2015 at an initial cost
Gulf transport company owns a freely transferable bus operators license between Salalah and muscat, which it acquired on 1 July 2015 at an initial cost of OMR 500,000. The useful life of the license is 16 years based on the date it is valid for. The entity uses the straight-line method to amortize the intangible. Such license is frequently traded between existing bus operators. On 31st December 2020 there was a modification in the fares between Salalah and muscat, due to this the license is traded in the active market for OMR330,000. Considering the above situation what is the carrying amount of the intangible asset in the books of Gulf transport company.
a) None of them
b) OMR 343,750
c) OMR 328,125
d) OMR 330,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started