1) Once a natural resource is extracted, depletion is recorded by debiting Depletion Expense and crediting Accumulated Depletion.

Group of answer choices

True or

False

2)

When a company contributes a nonmonetary asset, it should record the amount of the contribution expense as the lower of the fair value or book value of the donated asset.

Group of answer choices

True

False

3)

Co. X incurs a material cost for a rearrangement and reinstallation of machinery that is expected to result in a substantial increase in productivity. The cost of this rearrangement should be expensed.

Group of answer choices

True

False

4)

Development costs are part of the depletion basis regardless of whether successful efforts or full costing is being used.

Group of answer choices

True

False

5)

A company that reports on a calendar year purchased a plant asset for $120,000 on August 1, 20A1. The estimated useful life is five years, the estimated salvage value is $10,000, and the depreciation method is double-declining balance. Therefore, the depreciation expense for 20A1 (first year) is $20,000.

Group of answer choices

True

False