On January 1, 2011, W.Poon Inc.purchased equipment with a cost of HK$4,668,000 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 Hk$4,620,000.The asset's value-in-use is estimated to be HK$4,305,000.There is no change in the asset's useful life or salvage value.The 2011 income statement will report Loss on Impairment of

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The Answer of On January 1, 2011, W.Poon Inc.purchased equipment with a cost of HK$4,668,000 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 Hk$4,620,000.The asset's value-in-use is estimated to be HK$4,305,000.There is no change in the asset's useful life or salvage value.The 2011 income statement will report Loss on Impairment of