A flight school acquires a flight simulation software licence for 360,000. The contract allows at most 12,000 units hours of simulation, and the school expects to use them all. The licence's benefits are therefore consumed as simulation hours are used. During the first year, students completed 2,700 units hours. No residual value is expected. What is the amortisation charge for the first year?
- Cost of the licence
- 360,000
- Simulation hours allowed
- 12,000
- Hours completed during the year
- 2,700