1. Is carrying value ever the same as market value?
2. What incentive does a company have to allocate more of a group purchase price to land than to building?
3. Which depreciation method would best reflect the risk of obsolescence from rapid technological changes?
4. When would the disposal of a long-term asset result in no gain or loss?
5. When would annual depletion not equal depletion expense?
6. Why would a firm amortize a patent over fewer years than the patent's life?
7. Why would a company spend millions of dollars on goodwill?
8. What major advantage does a company that has posi- tive free cash flow have over a company that has negative free cash flow?