Place T (true) or F (false) in front of each of the following statements.

____ 1.Plant assets should be written down (below cost) when their market value has declined temporarily.

____ 2.An asset's cost less its accumulated depreciation equals its fair value.

____ 3.The units of activity method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time.

____ 4.The correction of prior periods' depreciation estimates would be disclosed on the retained earnings statement.

____ 5Expenditures to improve the efficiency or extend the useful life of an asset should be capitalized.

____ 6In non monetary exchanges losses are recognized only when the exchange has commercial substance.

____ 7In non monetary exchanges gains are always recognized.

___8 Inventory should be reported at the lower of cost or market or net realizable value and it must be based on the values of total inventory.