Louisiana State University, Shreveport ACCT 701 Chapter 11 Self-Test Indicate whether each of the following statements is true or false

Louisiana State University, Shreveport

ACCT 701

Chapter 11 Self-Test Indicate whether each of the following statements is true or false.

1)When a plant asset is still being used after it has been fully depreciated, depreciation can

be taken in excess of its cost.

2. In an exchange of nonmonetary assets having commercial substance, the new asset is

recorded at the fair market value of the asset received or the fair market value of the asset given up plus cash paid, whichever is more clearly evident.

3. In calculating depletion, the residual value of acquired land containing an ore deposit is

included in total costs subject to depletion.

4. All recorded intangible assets are subject to amortization.