Final answer:
The statement in question is 2. false.
Step-by-step explanation:
The statement that the depreciable cost of a plant asset is its original cost minus obsolescence is false. Depreciable cost, in accounting, is computed as the original cost of an asset minus its salvage value.
Depreciable cost represents the portion of the asset's cost that will be allocated over its useful life as depreciation expense. Obsolescence refers to the asset becoming outdated or no longer used, which can impact the asset's useful life and consequently the depreciation calculation, but it is not directly subtracted from the asset's original cost to determine its depreciable cost.
To calculate the depreciable cost, an accountant would take the cost paid to acquire the asset, add any expenditures made to prepare the asset for its intended use, and then subtract the estimated salvage value that the asset will have at the end of its useful life. This calculation is crucial for accurate financial reporting and tax purposes. Examples of plant assets include machinery, buildings, and equipment.