Following are a series of statements regarding topics discussed in this chapter. Required: Indicate whether each statement

Question:

Following are a series of statements regarding topics discussed in this chapter.
Required:
Indicate whether each statement is true (T) or false (F).
(a) The terms depreciable cost and acquisition cost for a PP&E asset are interchangeable.
(b) The of a PP&E asset is not relevant when a company applies the double-declining-balance depreciation method.
(c) If the market value of a long-term asset increased during a given accounting period, no depreciation expense should be recorded for the asset during that period.
(d) Land is not depreciated because it never declines in value.
(e) Depreciation expense is an operating expense.
(f) When PP&E assets are sold, a company generally records a gain or loss on disposal.
(g) Most should be amortized over their legal life, their useful life, or 40 years, whichever is longer.
(h) are presented on the at historical cost.
(i) is not amortized but must be written down when it has been impaired.
(j) Expenditures that are made to a PP&E asset after it has been in service for a number of years are always capitalized.
(k) The calculation of average asset age is generally only useful if it is calculated for each speciﬁc type of PP&E assets.
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