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22) Plant assets are defined as: A) Held for sale. B) Tangible assets used in the operation of business that have a useful life of less than one accounting period. C) Current assets. D) Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business. E) Intangible assets used in the operations of a business that have a useful life of more than one accounting period. 23) Salvage value is: A) A factor relevant to determining depreciation under MACRS. B) A factor relevant to amortizing an intangible asset with an indefinite life. C) A factor relevant to determining depreciation that cannot be revised during an asset's useful life. D) An estimate of the asset's value at the end of its benefit period. E) Not a factor relevant to determining depletion. 24) Depreciation: A) Is an outflow of cash from the use of a plant asset. B) Is the process of allocating the cost of a plant asset to expense. C) Measures the decline in market value of an asset. D) Is applied to land. E) Measures physical deterioration of an asset. 25) Once the estimated depreciation expense for an asset is calculated: A) Any changes are accumulated and recognized when the asset is sold. B) It may be revised based on new information. C) It cannot be changed, based on the consistency principle. D) It cannot be changed, based on the historical cost principle. E) The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes. 26) A machine with an original cost of $120,000 and no salvage value had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 8 years. Assuming the company uses straight-line depreciation, the amount of depreciation expense in year 5 is: A) $80,000 B) $12,000 C) $5,000 D) $20,000 E) $10,000 27) A change in an accounting estimate is: A) Not allowed under current accounting rules. B) Reflected in current and future years' financial statements, not in prior statements. C) Reflected in future financial statements and also requires modification of past statements. D) Reflected in past financial statements. E) Considered an error in the financial statements

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