On January 2, 20X1 Lamp, Inc. purchased a patent for a new consumer product for $120,000. At the time of purchase, the patent was valid for 14 years; however, the patents useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, 20X4 the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product.

Required:

1. Record any loss on impairment that Lamp should record in 20X4 related to this patent.
2. What should the total charge against income be in 20X4 on this patent?