A).

Green Deer Company purchased a tractor at a cost of $120,000. The tractor has an estimated residual value of $20,000 and an estimated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2012 and was used 2,400 hours in 2012 and 2,200 hours in 2013. What method of depreciation will produce the maximum depreciation expense in 2013?

a)	Straight-line

b)	Double declining balance

c)	Units of production

d) All methods produced the same amount in 2013

B).

Green Deer Company purchased a tractor at a cost of $120,000 on January 1, 2012. The tractor has an estimated residual value of $20,000 and an estimated life of 8 years. If Green Deer uses the straight-line method, what is the book value at January 1, 2016?

a) $70,000

b) $20,000

c) $80,000

d) None of the above