Question: Pinkerton Corp. uses the cost model for intangible assets. On April 10, 2009, Pinkerton acquired assets for $100,000. On December 31, 2009, it was determined

Pinkerton Corp. uses the cost model for intangible assets.

On April 10, 2009, Pinkerton acquired assets for

$100,000. On December 31, 2009, it was determined that the recoverable amount for these intangible assets was $80,000.

On December 31, 2010, it was determined that the intangible assets had a recoverable amount of $84,000. What is the impairment gain or loss recognized in 2009 and 2010 on the income statement?

2009 2010

a. $20,000 loss $16,000 loss

b. $20,000 loss $0

c. $20,000 loss $ 4,000 gain

d. $0 $0

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