E10-5 Leslie Peres has just slept through the class in which Professor Dobbins explained the concept of depreciation. Because the next test is scheduled for Wednesday, Peres telephones Kim Barnes to get her notes from the lecture. Barnes's notes are concise: "Depreciation- Sounds like Greek to me." Peres next tries Tim Lake, who says he thinks depreciation is what happens when an asset wears out. Lee McPherson is confident that depreciation is the process of building up a cash fund to replace an asset at the end of its useful life. Explain the concept of depreciation for Peres. Evaluate the explanations of Lake and McPherson. Be specific.