On January 2, 2011, Q

On January 2, 2011, Q.Tong Inc.purchased equipment with a cost of HK$10,440,000, a useful life of 10 years and no salvage value.The Company uses straight-line depreciation.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: There is no change in the asset's useful life or salvage value.The 2012 income statement will report

A) Recovery of Impairment Loss of HK$3,889.
B) Impairment Loss of HK$10,000.
C) Recovery of Impairment Loss of HK$38,889.
D) Impairment Loss of HK$1,000,000.