Wonton Ltd has recently acquired a copyright for specialist wonton recipes. The copyright has a legal life remaining of 10 years whilst in acquiring it Wonton Ltd had valued it on the basis of a 14-year life. A review carried out by the auditors at the year end produced indications from their marketing in-house consultants that there would be positive cash flows for approximately 7 years. The company resisted and argued that it should be amortised over its legal life.

How do you think it should be amortised?

a) 14 years

b) 10 years

c) immediate write off

d) 7 years