1. The Sahara Company purchased equipment on January 1, 2015, for $100,000. The equipment had an estimated residual value of $10,000, an estimated useful life of five years, and estimated lifetime output of 18,000 units. In 2016, the company produced 4,400 units and recorded depreciation expense of $22,000. What depreciation method did the company use?

A. double-declining-balance method

B. units-of-output method

C. sum-of-the-years'-digits method

D. straight-line method

2. Which of the following is not required to be disclosed in an entity's financial statements or accompanying footnotes?

A. the total amount of research and development costs charged to expense during the current year

B. accumulated amortization on the entity's intangibles as of its year-end

C. a material amount of internally developed goodwill

D. the method used to amortize the entity's intangible assets

3. ________ are capitalized and amortized over their useful life.

A. Purchased identifiable intangible assets with finite life

B. Unidentifiable intangible assets

C. Research and development costs

D. Purchased identifiable intangible assets with indefinite life