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) no Impairment Loss or Recovery of Impairment Loss.
B) Impairment Loss of HK$435,000.
C) Recovery of Impairment Loss of HK$40,889.
D) Recovery of Impairment Loss of HK$603,889.