TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1)

The term "plant assets" refers to long-lived assets acquired for use in business

operations, rather than for resale to customers.

2)

If a piece of equipment is dropped and damaged during installation, the cost of

repairing the damage should be added to the cost of the equipment.

3)

Sales tax on equipment is not part of the acquisition cost and should not be

capitalized.

4)

To "capitalize" an expenditure means to charge it to an asset account.

5)

A revenue expenditure is recorded in an expense account.

Depreciation in financial statements

Dynasty Co. uses straight-line depreciation in its financial statements, with

depreciation for a partial year rounded to the nearest full month.

On September 28, 2018 Dynasty purchased equipment at a cost of

$140,000. For financial reporting purposes, the useful life of this equipment

was estimated at 5 years, with a $30,000 salvage value.

Compute the depreciation expense relating to this equipment that Dynasty

will recognize in its financial statements in the following years. If no

depreciation will be recognized in a particular year, write zero.

Year Amount

2018 $________

2019 $________

2020 $________

2021 $________

2022 $________

2023 $________