Question Number One Twelve true-false statements appear below. You must answer any ten of them. If you answer more than ten, only the first ten will be graded and any extras will be ignored. For each statement you answer, insert "T" or "F" in the appropriate space provided on the separate answer sheet. 1. For depreciation purposes, land is assumed to have an indefinite useful life and, accordingly, is not depreciated. 2. Straight-line depreciation is not an example of an accelerated depreciation method. 3. Goodwill is an example of an intangible asset. 4. A sale of a depreciable asset at a price below its book value will result in a gain to the seller. 5. Use of the specific identification inventory valuation method will always result in assignment of a lower ending inventory valuation than will the use of the FIFO. method. 6. A trademark is an example of an exclusive right to produce and sell a commodity that has one or more unique features. 7. The Allowance for Bad Debts account is an example of an expense account. 8. When using the FIFO inventory valuation method, the cost of the most recently acquired inventory items will be assigned to the ending inventory. 9. For an intangible asset, the process of systematically allocating the cost of the asset to expense over the estimated useful life is referred to as amortization. 10. Use of the direct write-off method of recording bad debt will not require an Allowance for Bad Debts Account. 11. Use of the" percentage of credit sales" method to recorded bad debt expense attempts to arrive at an estimate of the proper end-of-year balance in the Allowance for Bad Debts account. 12. The cost of routine maintenance and minor repairs incurred to keep an asset in good working order, but not to extend the asset life or change its character, should be recorded as a capitalized cost