By way of a government grant, the port authority grants the shipowner Kalypso the right to operate a quay for a nominal price of 1,000, paid in cash. Kalypso also pays 14,000 in cash for legal and technical costs directly attributable to preparing this right. The fair value of the right is estimated at 400,000. Kalypso opts for measurement at the nominal amount plus directly attributable expenditure. Record the entry.
- Nominal price paid
- 1,000
- Directly attributable costs paid
- 14,000
- Estimated fair value of the right
- 400,000