試題詳解

18. On January 2, 2018, QQQ 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, 2018 and
December 31, 2019, 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 2019 income statement will report
(A) Recovery of Impairment Loss of HK$38,889.
(B)Impairment Loss of HK$10,000.
(C)Recovery of Impairment Loss of HK$3,889.
(D) Impairment Loss of HK$1,000,000.