Question 5 (4 marks) Statement 1 - The accounting process of allocating the cost of an intangible asset over its useful life is called amortization and the journal entry for recording amortization expense is Dr. intangible asset and Cr. amortization expense. Statement 2 - A company's retained earnings is decreased by the dividend declared and paid by the company. Statement 3 - To classify a business transaction as an accounting transaction, any two out of the three conditions of accounting transactions must be fulfilled including (1) two-sided event, (2) the transaction has financial impact to the company and (3) the transaction can be reliably measured. Statement 4 - The net realizable value of accounts receivable equals to the difference between total accounts receivable and total bad debt expense. Required: For ALL Statements 1, 2, 3 and 4: (a) identify whether the statement is correct or incorrect and (b) correct the mistake(s) in the statement if the statement is incorrect. Please follow the below format EXACTLY when answering this question. Statement # X X Correct / Incorrect Correct Incorrect Changes (restate with the correct answer) N/A Restate the whole statement with the correct