On August 1, 2011, Li Inc.purchased a license with a cost of HK$5,265,000 and a useful life of 10 years.At December 31, 2013, when the carrying value of the asset was HK$3,992,625, the company determined that impairment indicators were present.The fair less cost to sell the license was estimated to be HK$3,693,200.The asset's value -in-use is estimated to be HK$3,802,5000.Li's 2013 income statement will report Loss on Impairment of

Question

Quizplus · Accepted Answer

The Answer of On August 1, 2011, Li Inc.purchased a license with a cost of HK$5,265,000 and a useful life of 10 years.At December 31, 2013, when the carrying value of the asset was HK$3,992,625, the company determined that impairment indicators were present.The fair less cost to sell the license was estimated to be HK$3,693,200.The asset's value -in-use is estimated to be HK$3,802,5000.Li's 2013 income statement will report Loss on Impairment of