Use the Following Information for Questions

question 8

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.

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Definitions:

Parameter

A numerical characteristic of a population, such as a population mean m, a population standard deviation s, a population proportion p, and so on.

Adjusted Multiple Coefficient

A measure in statistics used to determine the goodness of fit of a model, adjusted for the number of predictors in the model.

SSE

Sum of Squared Errors, a measure used in statistical data analysis to represent the discrepancy between the data and an estimation model.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., the 4 in 4x).