TRUE OR FALSE

1. If proceeds from the sale of a plant asset exceed its book value, a loss on disposal occurs.

2. When plant assets are acquired through issuance of equity securities, the cost of the new asset is the book value of the old asset plus par value of the equity instrument issued.

3. The balances of the major classes of plant assets and accumulated depreciation by major classes should be disclosed in the statement of financial position or notes.

4. Natural resources are long-lived productive assets that are extracted in operations and are replaceable by man.

5. Wasting assets include fruit-bearing trees and underground deposits of oil, gas, and minerals.

6. All the exploration and evaluation costs associated with discovering new reserves are always written off as incurred.

7. Depletion expense is reported in the income statement as an operating expense.

8. The cost of building includes payments to tenants to induce them to vacate the building.

9. The book value or carrying value of PPE is always equal to its fair market value.