Question Details

Land is reported on the statement of financial position 




True or false:
1.	All plant assets (fixed assets) must be depreciated for accounting purposes. 


	2.	When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account. 
	3.	When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Delivery Equipment. 

	4.	Once cost is established for a plant asset, it becomes the basis of accounting for the asset unless the asset appreciates in value, in which case, fair value becomes the basis for accountability. 
	5.	Land is reported on the statement of financial position at its cost less accumulated depletion, or at its fair value, whichever is higher. 



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