Use the Following Information for Questions

question 36

Multiple Choice

Use the following information for questions.
On January 2, 2011, Lutz Inc.purchased a patent with a cost CHF940,000 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 CHF235,000.
• B)Amortization Expense of CHF250,000 and Loss on Impairment of CHF55,000.
• C)Amortization Expense of CHF235,000 and a Loss of Impairment of CHF25,000.
• D)Loss on impairment of CHF70,000.

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