Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
On January 2, 2011, Ace Inc.purchased a patent with a cost CHF1,880,000, and a useful life of 4 years.At December 31, 2011, and December 31, 2012, the company determines that impairment indicators are present.The following information is available for impairment testing at each year end:
No changes were made in the asset's estimated useful life.
-The company's 2012 income statement will report

A) Amortization Expense of CHF470,000.
B) Amortization Expense of CHF500,000 and Loss on Impairment of CHF110,000.
C) Amortization Expense of CHF470,000 and a Loss of Impairment of CHF50,000.
D) Loss on impairment of 140,000.