Name Intermediate Accounting I l. Modified True or False. Write True if the statement is correct and False if wrong. If False, underline the word/s that make the statement incorrect and replace it with the right word. (2 points each) 1. 2. 3. 4. 5. 6. 7. 8. 9. Land improvements not subject to depreciation are charged to the land improvements account. Unpaid real property taxes assumed by the buyer of the land are outright expensed. Real property taxes incurred after the acquisition date is capitalized as cost of the property. Cost of the removal of temporary safety fence around the construction site is charged to the building account. Depreciation is a matter of valuation. Legal fees and other expenses incurred in connection with the purchase of the property is outright expensed. Subsequent cost on an item of PPE will be capitalized if such expenditures extend the life of the property, increases the capacity of the property and quality of output, and improves the efficiency and safety of the property. Construction of a permanent fence after the completion of the building is charged to the building account. Expenditure for sidewalks, pavements, parking lot and driveways are charged to land improvements if such expenditures are part of the blueprint for the construction of a new building. 10. Patterns and dies used for the regular product are recorded as assets.