Pellane, whose reporting period ends on 31 December, leases computer servers with a commencement date of 1 April 20X1. Cost of the right-of-use asset: 180,000; lease term: 36 months; useful life of the servers: 8 years. No transfer of ownership and no purchase option. Pellane depreciates on a straight-line basis, pro rata to the months of use (method chosen). Compute the 20X1 depreciation charge and the carrying amount at 31 December 20X1.
- Cost of the right-of-use asset
- 180,000
- Lease term
- 36
- Useful life of the servers
- 8