Accounting · Intangible Assets
A non-current intangible asset with a finite useful life was capitalised on 1 January 20X4 for 500,000. Its useful life was initially estimated at 10 years with a zero residual value. The amortisation method is straight-line. On 31 December 20X5, the asset's residual value is re-estimated at 150,000. What is the amortisation expense for the year ended 31 December 20X6?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 125,000
- 250,000
- 331,250✓
- 435,000
Correct answer
31,250
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