Producer Pamela purchased the rights to distribute a film on 1 January 2020. The business financial year end is 31 July. Pamela estimates the company will be able to make use of the rights for 10 years, even though the owner is legally protected for 15 years. The company paid $550 000 for the rights.

If Producer Pamela uses the straight-line method of amortisation, what is the amortisation expense at 31 July 2020?

a)33,333

b)$21,389

c) $32,083

d)$27,500