What is the gain or loss on sale of the franchise rights

Reference no: EM133612067

Question: Jones Corp. owns a franchise right for Hungry Joe's, a popular hamburger restaurant chain. The franchise right has an indefinite useful life, was purchased for $450,000 five years ago, and is recorded as an intangible asset. Two years ago, the intangible asset was impaired by $60,000. In the current year, the franchise right was sold for $350,000. A fee of $20,000 for legal and transfer costs was required to be paid on disposition. Jones reports under IFRS. What is the gain or loss on sale of the franchise rights?

Reference no: EM133612067

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