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CalculationIntermediatePublished

Question · Residual value

A travel agency acquires an online booking platform for 270,000 and will use it for 3 years, on a straight-line basis. Its director believes it could be resold for 45,000 at the end of that period, but no buyer has made any commitment and there is no active market for this type of asset. What is the annual amortisation charge?

Cost of the platform
270,000
Resale price hoped for by the director
45,000
Useful life
3
Your answer

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