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d. 20. Which of the following most appropriately describe depreciation? A commission to the real estate agent involved in the purchase of the land a. Allocation of the cost of a plant b. Decline in the value of a plant asset c. Gradual obsolescence of plant. d. Physical deterioration of a plant asset. 21. As suming an asset has a useful life of 6 years, which of the following methods of depreciation would result in greatest depreciation in the first year? a. Cannot tell from the data that is given. b. Double-declining-balance method. c. Production method. d. Straight line method. 22. The sale of equipment costing $16,000 with accumulated depreciation of $13,400 and a sale price of $4,000., would result in a: a. Gain of $4,000 b. Gain of $1,400 c. Loss of $1,400 d. Loss of $12,000. 23. Which of the following is NOT classified as natural resource? a. Timberland b. Gas reserve c. Goodwill d. Oil well 24. Which of the following intangible assets grants the owner the exclusive right to publish and sell sheet music? a. Copyright. b. Non-compete covenant c. Patent d. Trademark. 25. According to generally accepted accounting principles, the proper accounting treatment of the cost of most research and development is to: a. Amortize the cost for a period not to exceed 40 years b. Amortize the cost over 5 years c. Carry the cost as an asset indefinitely. d. Write the cost off as an expense immediately. 26. T, F. Land held for speculative reasons is not classified as a property, plant, and equipment. 27. T, F. Estimated useful life in years is irrelevant when applying the production method of depreciation 28. T, F. If depreciation expense under the straight-line method is $1,000.00 in the first year, it will be $2,000.00 in the second year