Use the Following Information for Questions

question 81

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.
-The company's 2013 income statement will report amortization expense for the patent of

• A)$188,333.
• B)$232,000.
• C)$282,500.
• D)$595,000

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Definitions:

Diabetic Ketoacidosis

A complication of diabetes that occurs when the body cannot use sugar (glucose) as a fuel source because the body has no insulin or not enough insulin and fat is used instead. Byproducts of fat breakdown, called ketones, build up in the body.

Hyperglycemia

Increase of blood sugar, as in diabetes.

Fruity Odor

A smell often described as sweet and reminiscent of various fruits, sometimes indicative of medical conditions like diabetic ketoacidosis.

Excessive Cold

A condition characterized by temperatures significantly below what is considered comfortable or safe for humans.