A debit to accumulated depreciation

A debit to depreciation expense

A credit to sales revenue

A credit to accumulated depreciation

Goodwill

R&D costs for a patent

A patent

A trademark with indefinite useful life

Machine which produces products

Land

Building

Truck

Sale

Scrap

Conversion

Exchange

A business should recognize the fair value of an asset retirement obligations when it incurs the liability and if it can make a reasonable estimate of its fair value

If the fair value of an asset retirement obligation cannot initially be obtained, the liability can be recorded at a later date when the fair value is available

When estimating the fair value of an asset retirement obligation, a company should use a discounted cash flow model using a rate that factors in market risk

If a company acquires a fixed asset to which an asset retirement obligation is attached, the company should recognize a liability as of the acquisition date

Each identifiable long term asset

Each acquisition unit

Each reporting unit

Entire business as a whole