1-An asset leased under an operating lease will appear on the balance sheet as a long-term asset.

True

False

2-A tangible asset is one that lacks physical existence.

True

False

3-The units-of-activity depreciation method provides a good match of expenses against revenue.

True

False

4-A machine with a cost of $180,000 has an estimated residual value of $18,000 and an estimated life of 3 years or 18,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,500 hours?

a.$5,500

b.$49,500

c.$31,500

d.$60,500