Indicate whether each of the following statements is true or false.TRUE - The cost of land includes its purchase price and other related costs, including thecost of removing an old unusable building that is on the land.
debitedto the accumulated depreciation account.
depreciation can be taken in excess of its cost.
asset is recorded at the fair market value of the asset received or the fair market valueof the asset given up plus cash paid, whichever is more clearly evident.
deposit is included in total costs subject to depletion.
Candy purchased a machine on Jan 1 2011 for 300,000. At the time of purchase,the machine was estimated to have a life of 8 years and a residual value of 10,000. In 2015 the company determined that the machine had a total useful life of 10 years (another 6 years left) and a residual value of 20,000. If the company uses straight-line method of depreciation, what will be the depreciation expense for the machine in 2015?
Select the best answer for each of the following questions.