Problem 3 (20 Points) Place T (true) or F (false) in front of each of the following statements. anit assets should not be written down (below cost) when their market value has -2. An asset's cost plus its accumulated depreciation equals its book value. The straight-line method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time. 3. 4. The correction of prior periods' depreciation estimates would be disclosed on the retained earnings statement. Expenditures to improve the efficieney or extend the useful life of an asset should be expensed. s 6 In nonmonetary exchanges losses are always recognized 7 In nonmonetary exchanges, gains are recognized when the exchange has commercial substance 8 Inventory should be reported at the lower of cost or market and it may be based on the values of individual items, categories, or the total inventory