A patent acquired for 600,000 is amortised on a straight-line basis over 10 years, with no residual value. After 4 years of amortisation, the year-end review shows that the technology will remain usable for longer than expected: the remaining useful life is now 8 years. Calculate the carrying amount at the time of the revision and the revised annual charge.
- Cost of the patent
- 600,000
- Initial useful life
- 10
- Years already amortised
- 4
- Revised remaining useful life
- 8