Use the Following Information for Questions

question 22

Multiple Choice

Use the following information for questions.
On January 1, 2011, Dillman Inc.purchased a patent with a cost €3,480,000, 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 costs to sell the patent is estimated to be €1,620,000.The patent's value-in-use is estimated to be €1,695,000.The asset's remaining useful life is estimated to be 2 years.
-The company's 2013 income statement will report amortization expense for the patent of

• A)€565,000.
• B)€696,000.
• C)€847,500.
• D)€1,695,000.

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Definitions:

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve lives.

Frequency Polygons

A graphical representation of the distribution of a dataset that shows the frequencies of classes via connected dots.

Variability

The measure of how spread out or scattered scores are in a distribution.

Modality

The number of peaks or modes in the distribution of data, used to describe the shape of the data distribution.