XYZ Company purchases a piece of equipment on January 1, 2007 at a cost of $100,000. The equipment has a five-year useful life and can be sold for $10,000 at the end of five years. If XYZ Company uses the 200% percent declining balance depreciation method, how much depreciation would be recorded in the second year? 

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?

XYZ Company has credit sales of $4,000,000 during Year 1. At December 31 Year 1, the balance in Accounts Receivable is $142,000. The company estimates bad debts to equal 1 percent of credit sales. What effect will the company's December 31 adjusting entry have on the company's Income Statement and Balance Sheet?

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 __________________.