Use the Following Information for Questions

question 59

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 CHF235,000 and Loss on Impairment of CHF10,000.
• C)Amortization Expense of CHF235,000 and a Recovery of Impairment of CHF45,000.
• D)Loss on impairment of 190,000.

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Definitions:

Gross Savings Rate

The total level of savings within an economy expressed as a percentage of total income.

2000

Marks the year notable for events such as the dot-com bubble peak, and the U.S. presidential election, which resulted in George W. Bush's victory.

Mancur Olson

Mancur Olson was an American economist and political scientist known for his work on public goods and his theory of collective action, explaining how individuals can work together to achieve common goals.

Developed Nations

Countries with high levels of industrialization, a higher standard of living, and advanced technological infrastructure.