On 1 January 20X5, DR purchased a ten-year franchise for $800,000. On 31 December 20X6, DR sold this franchise for $975,000. It incurred selling costs of $15,000. What is the amount of the gain on derecognition of this franchise that DR should recognise in its statement of profit or loss for the year ended 31 December 20X6?

Answer rating: 100% (QA)

To calculate the gain on derecognition of the franchise that DR should re... View the full answer