Use the Following Information for Questions

question 104

Multiple Choice

Use the following information for questions.
On January 1, 2011, Edmondton Inc.purchased equipment with a cost of €4,500,000, a useful life of 12 years and no salvage value.The Company uses straight-line depreciation.At December 31, 2011, the company determines that impairment indicators are present.The fair value less cost to sell the asset is estimated to be €3,850,000.The asset's value-in-use is estimated to be €3,500,000.There is no change in the asset's useful life or salvage value.
-The 2012 (second year) income statement will report depreciation expense for the equipment of

• A)€320,833.
• B)€350,000.
• C)€375,000.
• D)€385,000.

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