True/False

1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost is spread over its useful life. 2. ____ PP&E is a long-term asset. 3. ____ If PP&E is found to be permanently impaired, a loss must be recorded. 4. ____ If an expenditure increases the useful life of an asset, it should be capitalized, not expensed. 5. ____ It does not matter how a company divides a basket purchase since all the assets will be depreciated anyway. 6. ____ Companies are allowed to capitalize interest while they are constructing an asset because the asset is not available to generate revenues yet. 7. ____ The only acceptable method of depreciation is straight-line. 8. ____ Accumulated depreciation is a contra-asset account. 9. ____ The purchase price of an asset is capitalized, but costs like transportation and set up of the asset should be expensed as incurred. 10. ____ Both assets used to generate revenue from operations and assets held as investment property are reported as PP&E on the balance sheet.