Multiple Choice
Use the following information for questions.
On January 1, 2011, Bingham Inc.purchased a patent with a cost €1,160,000, a useful life of 5 years.The company uses straight-line depreciation.At December 31, 2012, the company determines that impairment indicators are present.The fair value less cost to sell the patent is estimated to be €540,000.The patent's value-in-use is estimated to be €565,000.The asset's remaining useful life is estimated to be 2 years.
-Bingham's 2012 income statement will report Loss on Impairment of
A) €0.
B) €131,000.
C) €156,000.
D) €595,000.
Correct Answer:
Verified
Correct Answer:
Verified
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