1. Onc argument in favor of an accelerated depreciation (like the double-declining balance method) is that asset bencfit is greater in the carlicr years. A) True B) False 2. Recording depreciation on plant assets affects the balance sheet and the income statement A) True B) False 3. The four categories of plant assets are: land, land improvements, buildings, and equipment. B) intangibles, land, buildings, and equipment. furnishings and fixtures, land, buildings, and equipment. property, plant, equipment, and land. 4. Depreciation is a process of FA) asset devaluation. B) cost accumulation. cost allocation. D) asset valuation. 5. The cost of tearing down a building on land just purchased should be A) debited to the Land account. B) debited to the Land Improvements account. C) debited to the Building account. D) expensed immediately. 6. The book value of an asset is equal to the A) asset's market value less its historical cost B) blue book value relied on by secondary markets. C) replacement cost of the asset D) asset's cost less accumulated depreciation