ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 97

17. Improvements are often referred to as betterments and involve the substitution of a better asset for the one currently used. 18. When an ordinary repair occurs, several periods will usually benefit. 19. Companies always treat gains or losses from an involuntary conversion as extraordinary items. 20. If a company scraps an asset without any cash recovery, it recognizes a loss equal to the asset’s book value.