Which of the following items should NOT be depreciated, depleted, or amortized?

A.

Land

B.

Intangible property

C.

Natural resources

D.

Tangible property, plant, and equipment other than land

2)

Which of the following is NOT a characteristic of a plant asset?

A.

The asset is used in the production of income for the business.

B.

The asset is available for sale to customers in the ordinary course of business.

C.

The asset has future usefulness and value.

D.

The asset has physical form.

3)

On January 1, 2013, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2013 and 12,000 in 2014.

What is depreciation expense for 2014 if the company uses units- of -production depreciation?