The following information is available for Barkley Company's patents: Barkley would record a loss on impairment of
A) $ 120,000.
B) $ 420,000.
C) $1,720,000.
D) $1,840,000.

Question

The following information is available for Barkley Company's patents:  Barkley would record a loss on impairment of
A) $ 120,000. 
B) $ 420,000. 
C) $1,720,000. 
D) $1,840,000.

Quizplus · Accepted Answer

The information given in the question is a patent number and code, which does not provide any information on the carrying value or useful life of the patent. Therefore, we cannot determine the exact amount of loss on impairment. However, the fact that there is a loss on impairment suggests that the carrying value of the patent is greater than its fair value, indicating a significant impairment. Option B is the closest estimate to a significant impairment loss and is, therefore, the best choice.

The Following Information Is Available for Barkley Company's Patents