The Sarvanel group, which applies the cost model, sells to a competitor a portfolio of subscriber contracts acquired for 500,000. At the date of disposal, accumulated amortisation amounts to 200,000 and accumulated impairment losses to 60,000. The selling price is 260,000; legal costs directly related to the disposal amount to 12,000. Calculate the carrying amount at the date of disposal and the result on disposal.
- Cost of the contract portfolio
- 500,000
- Accumulated amortisation
- 200,000
- Accumulated impairment losses
- 60,000
- Selling price
- 260,000
- Legal costs related to the disposal
- 12,000