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Your company provides home cleaning services. It recently purchased a prospective customer list from a marketing company with the expectation of generating sales for at

Your company provides home cleaning services. It recently purchased a prospective customer list from a marketing company with the expectation of generating sales for at least 2 years, up to a maximum of 4 years. Additional names will be added to the list over the next 4 years, which may extend the useful life of the list for another year.

Discuss how your company should account for the customer list, including amortisation over an appropriate useful life.

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