A firm spent $$1,000$ to improve the engine of a machine, which extended the useful life of the machine by two years. The $$1,000$ spending should be

capitalized $($i$.$e$.,$ recognized as an asset on the balance sheet$).$

True

False

QUESTION $3$

When Apple spends money on advertisement, the value of the Apple brand increases and therefore Apple should capitalize the amount spent on advertisement

as an asset $($brand name$)$ on the balance sheet.

True

False

QUESTION $4$

Depreciation is a valuation process that assesses the fair value of the underlying asset.

True

False

QUESTION $5$

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