Lawson Corp. uses IFR. S and the cost model for intangible assets. On March 1, year 1, Lawson acquired intangible assets with an indefinite life for $100,000. On December 31, year 1, it was determined that the recoverable amount for these intangible assets was $90,000. On December 31, year 2, it was determined that the intangible assets had a recoverable amount of $94,000. What is the impairment gain or loss recognized in year 1 and year 2 on the income statement?
Year I Year 2
a. $10,000 loss $6,000 loss
b. $10,000 loss $4,000 gain
c. $10,000 loss $0
d. $0 $0
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Home » Business » Lawson Corp. uses IFR. S and the cost model for intangible assets. On March 1, year 1, Lawson acquired intangible assets with an indefinite life for $100,000.