1. The cost of equipment consists of the cash purchase price plus certain related costs such as sales taxes and freight charges. True False 2. Cost to construct a plant includes the contract price, architect's fees, building fees, excavation costs but not interest costs incurred to finance the project. True False 3. The book value of an asset equals its cost less accumulated depreciation. True False 4. Under the declining-balance method of depreciation, an asset may not be depreciated below its estimated salvage value. True False 5. Ordinary repairs are expenditures to increase the operating efficiency, productive capacity, or expected useful life of a plant asset. True False