1. A heavy e quipment company maintains a fleet of construction equipment for its various contracts. The CPA has determined that the average life of the equipment is seven years. equipment is recorded on the balance sheet at the time of purchase The cost of the Which expense recognition equipment on the income statement? 2. Which of the following items are key criteria for recognizing sales as method is used to recognize the cost of the income on the income statement? 1. Seller passes ownership rights to the buyer. 2. Buyer pays in cash or promises to pay. 3. The seller can accurately measure the amount of revenue 4. The payment terms are agreed upon between the buyer and seller