True$/$False $(2$ points$/$ea$)$

$11\mathrm{.}6.$ Land is a depreciable asset as land appreciates overtime.

True $\_\_\_\_\_$ False $\_\_\_\_\_\_$

$11\mathrm{.}7.$ If an asset is sold before the end of its useful life for more than its salvage value, the difference

between the two amounts is defined as capital gain for tax accounting.

True $\_\_\_\_\_$ False $\_\_\_\_\_\_$

$11\mathrm{.}8.$ An asset was sold for $$50,000$ at the end of its useful life of $7$ years. The equipment was

bought for $$400,000.$ If it has been depreciated as a $7-$year MACRS property, the depreciation

recapture on this property is $$50,000.$

True $\_\_\_\_\_$ False $\_\_\_\_\_\_$

$11\mathrm{.}9.$ Depreciation may be caused by obsolescence.

True $\_\_\_\_\_$ False $\_\_\_\_\_\_$

$11\mathrm{.}10.$ The straight $$ line $($SL$)$ method is often used for intangible property such as patents.

True $\_\_\_\_\_$ False $\_\_\_\_\_\_$