CALCULATOR FAL SCREEN PITER Exercise 9-4 Alysha Monet has prepared the following list of statements about depreciation. Identify each statement as true or false. 1. 2. Depreciation is a process of asset valuation, not cost allocation. Depreciation provides for the proper matching of expenses with revenues 3. The book value of a plant asset should approximate its fair value. 4. Deprecilation applies to three classes of plant assets: land, buildings, and equipment 5. Depreciation does not apply to a building because udy its usefulness and revenue-producing ability generally remain intact over time. 6. The revenue-producing ability of a depreciable asset will decline due to wear and tear and to obsolescence 7. Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset 8. 9. Depreciation expense and accumulated depreciation are reported on the income statement Three factors affect the computation of depreciation: cost, useful life, and salvage value