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Question · Amortisation method and charge

Lumivert acquires a licence to operate a lighting process for 900,000 and will use it for 6 years. A competitor has contractually committed to buy the licence back for 180,000 at the end of those 6 years. The benefits are consumed evenly and the straight-line method is used. The intern calculates an annual charge of 150,000. What is the correct annual charge?

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