1. Define the following terms: depreciation, depletion and amortization.
2. What are the major factors considered in determining what depreciation method to use?
3. Describe cost depletion and percentage depletion. Why is the percentage depletion method permitted?
4. What are the two main characteristics of intangible assets?
5. What are factors to be considered in estimating the useful life of an intangible asset?
6. What is goodwill? What is bargain purchase?
7. In examining financial statements, financial analysts often write off goodwill immediately. Why would this be done?