Use the Following Information for Questions

question 119

Multiple Choice

Use the following information for questions.
On January 2, 2011, Ace Inc.purchased a patent with a cost CHF1,880,000, and 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 CHF470,000.
• B)Amortization Expense of CHF470,000 and Loss on Impairment of CHF20,000.
• C)Amortization Expense of CHF470,000 and a Recovery of Impairment of CHF90,000.
• D)Loss on impairment of 380,000.

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Definitions:

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and avoid confrontation.

Authoritative

Possessing or exhibiting authority; commanding respect based on competence or expertise.

Temperament

Inherent aspects of an individual's personality, such as mood, disposition, and adaptability, often regarded as innate rather than learned.

Critical Period

A specific time window in developmental psychology during which an organism is particularly susceptible to certain stimuli, which has lasting effects on future development.