Which of the following is a characteristic of grouping assets into one of seven life classes?

XYZ Company sells a residential lot to Mr. A for $140,000. The cost assigned to the lot by XYZ Company is $56,000. The contract calls for five annual payments of $28,000. Each payment is received on time at the end of each of the five years. If XYZ Company recognizes income under the cost-recovery-first method, how much income would they recognize in Year 2?

The sum-of-the-years digits method is an example of a/an ________________.

Which of the following statements about selecting the best depreciation method for tax purposes is incorrect?

Late in Year 1, XYZ Company signs a contract to construct a bridge for the Florida Dept. of Transportation. The contract price is $42,000,000. The costs during the 3-year construction period are as follows: Year 2: $10,000,000 Year 3: $15,000,000 Year 4: $5,000,000 If XYZ Company recognizes income under the percentage-of-completion method, how much income would they recognize on the bridge contract in Year 4?

In which of the following methods may salvage be ignored when calculating depreciation?

Late in Year 1, XYZ Company signs a contract to construct a bridge for the Florida Dept. of Transportation. The contract price is $42,000,000. The costs during the 3-year construction period are as follows: Year 2: $10,000,000 Year 3: $15,000,000 Year 4: $5,000,000 If XYZ Company recognizes income under the percentage-of-completion method, how much income would they recognize on the bridge contract in Year 3?

XYZ Company sells a residential lot to Mr. A for $140,000. The cost assigned to the lot by XYZ Company is $56,000. The contract calls for five annual payments of $28,000. Each payment is received on time at the end of each of the five years. If XYZ Company recognizes income under the cost-recovery-first method, how much income would they recognize in Year 3?

Which of the following accounts is credited for depreciation?

The amortization of natural resources is referred to as __________________.

Which of the following is a functional factor in determining depreciation?