XYZ Company owns machinery with a cost of $100,000 and an accumulated depreciation of $60,000 on January 1, 2007. On July 1, 2007, the machinery is sold for $43,000. The straight line depreciation method has been used during the previous six years of life. How much gain or loss will be recorded on the sale?

What occurs when the then-current book value of an asset exceeds the sum of expected undiscounted cash flow?

Which of the following statements about MACRS depreciation is NOT true?

In 2008, XYZ Company spends $250,000 on research and development to generate new product lines. Of the five projects in progress, one results in a patented item while the other four are considered unsuccessful. According to generally accepted accounting principles, how much of the $250,000 should be recognized as an expense in 2008?

Depreciation is not a decline in value, but a process of __________________.

The denominator of the sum-of-the-years digits fraction is ______________.

When an asset impairment occurs, a company writes down the asset to _______________.

The situation in which a company uses its accounts receivable to obtain a loan is called ___________. In this process, the company usually maintains control of the receivables, collects from customers, and forwards the proceeds to the lending institution to liquidate the loan.

A manufacturing firm sells a parcel of land next to one of its warehouses. What type of activity is this?

When the ______________ method is used to estimate uncollectible accounts, the provision for uncollectible accounts is added to the existing balance in the Allowance for Uncollectible Accounts.

A fast food restaurant chain sells a division that operates movie theaters. What type of activity is this?