Indicate whether each statement is TRUE OR FALSE. 1. Depreciation is the process of allocating the cost of a plant asset to an expense account in the accounting periods benefiting from its use. 2. Depreciation measures the actual decline in market value of an asset. 3. Accumulated depreciation represents funds set aside to buy new assets when the assets currently owned are replaced. 4. Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change in accounting estimate and is reflected in the past, current, and future financial statements. 5. Recognizing a gain or a loss when disposing of an asset may depend on whether or not there is commercial substance in the transaction. 6. The total depreciation expense over an asset's useful life will be identical across different of methods of depreciation (i.e., straight-line, units of production, and accelerated methods such as double declining). 7. Most companies use accelerated depreciation for tax purposes as it reduces taxable income due to higher depreciation expense in the early years of an asset's life. 8. An assets cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. 9. Revenue expenditures are additional costs of plant assets that materially increase the assets' life or productive capabilities. 10. If an asset is sold above its book value, the selling company records a loss. 11. Amortization is the process of allocating the cost of natural resources to periods when they are consumed. 12. Since goodwill is intangible, it is amortized each year using the straight-line method, the same as other intangibles are amortized. 13. A copyright gives its owner the exclusive right to publish and sell a musical, literary, or artistic work during the life of the creator plus 10 years. 14. When the value of plant assets decline after acquisition, but before disposition, both GAAP and IFRS require companies to record those decreases as impairment losses. 15. Intangible assets are certain nonphysical assets used in operations that confer on their owners long-term rights, privileges, or competitive advantage.