5. Test Your Knowledge 1- Plant assets are: A. Tingible assets used in the operation of a business that have a useful life of more than one accounting period B. Current assets C. Held for sale D. Intangible assets used in the operations of a business that have a useful life of more than one accounting period 2- Depreciation: A. Measures the decline in market value of an asset B. Measures physical deterioration of an asset C. Is the process of allocating to expense the cost of a plant asset D. Is an outflow of cash from the use of a plant asset 3- When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is 51,500 . After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: A. $5,375,00 B. 52,687.50 C. 55,543.75 D. $10,750.00