Gulf transport company owns a freely transferable bus operator's license between Salalah and muscat, which it acquired on 1 July 2015 at an initial cost of OMR 500,000. The useful life of the license is 16 years based on the date it is valid for. The entity uses the straight-line method to amortize the intangible. Such license is frequently traded between existing bus operators. On 31st December 2020 there was a modification in the fares between Salalah and muscat, due to this the license is traded in the active market for OMR330,000. Considering the above situation what is the carrying amount of the intangible asset in the books of Gulf transport company. OMR 343,750 OMR 330,000 OMR 328,125 None of them

Gulf transport company owns a freely transferable bus operator's license between Salalah and muscat, which it acquired on 1 July 2015 at an initial cost of OMR 500,000. The useful life of the license is 16 years based on the date it is valid for. The entity uses the straight-line method to amortize the intangible. Such license is frequently traded between existing bus operators. On 31st December 2020 there was a modification in the fares between Salalah and muscat, due to this the license is traded in the active market for OMR330,000. Considering the above situation what is the carrying amount of the intangible asset in the books of Gulf transport company. OMR 343,750 OMR 330,000 OMR 328,125 None of them

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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