1) Assume a new tractor is purchased on January 1 for $150,000 and given a salvage value of $50,000 and a useful life of 5 years. What would the annual depreciation be for the first year under each depreciation method (straight line & double declining)? 2) What would the tractor's book value be at the beginning of year 2 under each depreciation method? (Bonus) What is the maximum amount of depreciation permitted using double declining method in Year 3? 171