- cost of moving
On Jan 1, 2000, XXX Co. purchased a copyright for 600,000, having an estimated useful life of 16 years. In Jan 2004, XXX paid 90,000 for legal fees in a successful defense of the copyright. What is copyright amortization for the year ended Dec 31, 2004?
(Under US GAAP, the cost of the copyright includes the cost of legal fees and other costs of successfully defending the intangible asset, whereas under IFRS, it is expensed)
Under IFRS, the answer is 37,500 but I dont get how?
Under US GAAP no answer is given, but I got 48,125. Am I correct?
Help would be greatly appreciated..
Additional Details Here is how I got 48,125:
Depreciation for 2000-2003
600,000/16 x 3 = 112,500
Deprection for 2004
(600,000 90,000 - 112,500)/(16-4) = 48,125
(Under US GAAP, the cost of the copyright includes the cost of legal fees and other costs of successfully defending the intangible asset, whereas under IFRS, it is expensed)
Under IFRS, the answer is 37,500 but I dont get how?
Under US GAAP no answer is given, but I got 48,125. Am I correct?
Help would be greatly appreciated..
Depreciation for 2000-2003
600,000/16 x 3 = 112,500
Deprection for 2004
(600,000 90,000 - 112,500)/(16-4) = 48,125
How to compute for copyright amortization (under IFRS and US GAAP)?
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