Sports Med sold an X-ray machine that originally cost $100,000 for $60,000. The accumulated depreciation on the machine to the date of sale was $40,000. On this sale, Sports Med should recognize: $0 gain or loss. $20,000 gain. $25,000 gain. $40,000 loss. $60,000 gain. The characteristics of a liability include: Occurrence of a past transaction or event. Existence of a present obligation. Requirement of future payment of assets or rendering of services. A liability can be current or long term. All of these answers are correct. Fees accepted in advance from a client: Are recorded as earned revenues on the income statement. Increase income. Are recorded as liabilities. Do not increase assets. None of these answers is correct.