The Marée Haute fishing company acquires a transferable fishing quota for 500,000 and will use it for 7 years. These quotas are traded on an active market, by reference to which the residual value at the end of use is determined at 80,000; that market will probably still exist at the end of the quota's use. The quota is available for use on 1 October 20X1, that is 3 months before the year-end of 31 December 20X1. The straight-line method is used. Calculate the depreciable amount and the charge for 20X1.
- Cost of the quota
- 500,000
- Residual value determined by reference to the active market
- 80,000
- Useful life
- 7
- Months of use in 20X1
- 3