Orvia gives up its licence to distribute a range of tools (cost 500,000, accumulated amortisation 200,000) in exchange for a patent held by Kamel, with no cash adjustment. The analysis concludes that the exchange has commercial substance, and the fair value of each of the two assets is reliably measured at 380,000. What is the cost of the patent received by Orvia?
- Cost of the licence given up
- 500,000
- Accumulated amortisation of the licence given up
- 200,000
- Fair value of the assets exchanged
- 380,000