1. Crestview Estates purchased a tractor on January 1, 2012, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2012 and 3,000 miles in 2013, what is the balance for accumulated depreciation at the end of 2013 using the activity method? A. $38,000. B. $6,000. C. $16,000. D. $10,000.

2. Nanki Corporation purchased equipment at the beginning of 2012 for $650,000. In 2012 and 2013, Nanki depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2014, due to changes in technology, Nanki revised the useful life to a total of six years (four more years) with zero residual value. What depreciation expense would Nanki record for the year 2014 on this equipment? A. $108,333. B. $106,667. C. $122,500. D. $81,667.

3. Which of the following intangible assets is not amortized? A. Patents. B. Copyrights. C. Franchises. D. Goodwill.

4. Bricktown Exchange purchases a copyright on January 1, 2012, for $50,000. The copyright has a remaining legal life of 25 years, but only an expected useful life of five years with no residual value. Assuming the company uses the straight-line method, what is the amortization expense for the year ended December 31, 2012? A. $0. B. $2,000. C. $3,333. D. $10,000.

5 Berry Co. purchases a patent on January 1, 2012, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2013? A. $0. B. $8,000. C. $16,000. D. $40,000.

6 . Berry Co. purchases a patent on January 1, 2012, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the carrying value of the patent on December 31, 2013? A. $21,000 B. $33,000 C. $24,000 D. $26,000