The radio station Ondine exchanges its broadcasting licence in one region (cost 600,000, accumulated amortisation 240,000) for an equivalent licence in another region, held by a competitor. The documented analysis concludes that the exchange lacks commercial substance; the fair value of each licence is estimated at 450,000. Record the exchange entry.
- Cost of the licence given up
- 600,000
- Accumulated amortisation of the licence given up
- 240,000
- Estimated fair value of each licence
- 450,000