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1. On April 1, 2016, Marlin Company purchased a producing oil well at a cash cost of $350,000. It is estimated that 500,000 barrels of oil can be produced over the remaining life of the well. By December 31, 2016, 25,000 barrels of oil were produced and sold. The amount of depletion expense for 2016, on this well would be: A) $17,500. B) $20,000. C) $18,000. D) $12,000. Input the correct letter answer

2.On January 1, 2016, Stetson Company paid $160,000 to obtain a patent. Stetson expected to use the patent for 5 years before it became technologically obsolete. Based on this information, the amount of amortization expense on the December 31, 2018 income statement and the book value of the patent on the December 31, 2018 balance sheet would be: A) $32,000 / $64,000. B) $32,000 / $96,000. C) $64,000 / $64,000. D) $64,000 / $96,000. Input the correct Letter answer

3.Fig, Inc., purchased equipment at a cost of $84,000. The equipment has an estimated residual value of $12,000 and an estimated life of 8 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2016. During the first year of operation, it was used for 1,500 hours. At the end of 8 years, Fig expects to replace this old equipment with a newer model at an estimated cost of $90,000. What amount will Fig report as depreciation expense over the 8 year life of the equipment?

	1.	12,000
	2.	72,000
	3.	84,000
	4.	Depends upon the depreciation method chosen

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