1. The purpose of depreciation is to allocate the asset's cost systematically and rationally over the life of the asset to ensure that the company has adequate capital for future replacement.

True or False

2. The depreciation base is computed as follows: Estimated Residual Value = Depreciation Base - Asset Cost

true or false

3. Engineering follow-through in an early stage of commercial production can be included in R&D.

True or False

4. For intangible assets that are amortized, the total cost, accumulated amortization, amortization expense, and estimated amortization expense for the next 5 years needs to be disclosed.

True or False

5. A patent is granted by the federal government giving the owner control of the manufacture or other use of an invention for 20 years.

True or False