X Your answer is incorrect Alysha Monet has prepared the following list of statements about depreciation. Identify each statement as true or false. Depreciation is a process of asset valuation, not cost allocation. 1 2 3 4. 5. 6. Depreciation provides for the proper recording of expenses (efforts) with revenues (results). The book value of a plant asset should approximate its fair value. Depreciation applies to three classes of plant assets: land, buildings, and equipment Depreciation does not apply to a building because its usefulness and revenue-producing ability generally remain intact over The revenue-producing ability of a depreciable asset will decline due to wear and tear and to obsolescence Recognizing depreciation on an asset results in an accumulation of cash for replacement oIthe asset. The balance in accumulated depreciation represents the total cost that has been charged to expense since placing the asset Depreciation expense and accumulated depreciation are reported on the income statement Three factors affect the computation of depreciation cost, useful life, and salvage value 7 8 19. 10 eTextbook and Media Assistance Used Safor La Attempts: 1 of 10 used