TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) Gains on the sale of equipment increase net income while losses on the sale of equipment decrease net income. 1) _______

2) At the end of its useful life, the book value of an asset must be zero. 2) _______

3) The book value of an asset cannot be less than its residual value. 3) _______

4) An investment is a held-to-maturity investment in bonds if it is management's intent to sell the investment before the maturity date. 4) _______

5) When rates of return are high in a country with a stable economy, international investors buy stocks and bonds of that country. This activity increases the country's exchange rate. 5) _______

6) Long-term available-for-sale investments in stock are reported on the balance sheet at cost. 6) _______