8. The single cost of acquiring land and an unusable old building is a. Charged to land only. b. Charged to bullding only. c. Allocated between land and building based on relative fair value. d. Allocated between land and building based on carrying amount. 9. Which of the following statements about depreciation is correct? a. A depreciable asset must be depreciated from the date of purchase. b. The annual depreciation charge must be the same every year. c. An asset's complete cost must be depreciated at some point. d. Depreciation is not recognized if the carrying amount of an asset is less than its residual 10. One of the kinds of depreciation is physical depreciation which may include all of the following, except: a. Accidents such as flood, fire or earthquake. b. Wear and tear due to usage. c. Passage of time even if assets is not being used. d. Inadequacy caused by increased in the volume of operation making the asset obsolete. 11. Which of the following is not considered as exploitation and evaluation expenditures? a. Expenditures before an entity obtained legal rights to explore. b. Expenditures after the technical feasibility and commercial viability of extracting mineral resources are demonstrable. c. Expenditures on commercial production. d. All of these are not considered as exploration and evaluation expenditures. 12. Which of the following does not pertain to the characteristics of wasting assets? a. Wasting assets are physically consumed. b. Wasting assets are replaceable only through acts of nature. c. Wasting assets can also be produced through the efforts of men. d. Wasting assets are material objects with economic value produced by nature