Your company provides home cleaning services. It recently purchased a prospective customer list from a marketing company
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Question:
Your company provides home cleaning services. It recently purchased a prospective customer list from a marketing company with the expectation of generating sales for at least 2 years, up to a maximum of 4 years. Additional names will be added to the list over the next 4 years, which may extend the useful life of the list for another year.
Discuss how your company should account for the customer list, including amortisation over an appropriate useful life
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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