1. Singh is starting a landscaping business and buys a truck for $50,000 with a useful life of 5 years and a salvage value of $4000

(a) Calculate the depreciation using double declining balance method

(b) Explain the advantages and disadvantages of using double declining balance method

2. Prabhjoth want to start a pizza business and buys an oven for $50,000, purchased on 1/1/18 with a useful life of 5 years.

(a) Using a straight line method calculate the depreciation

(b) Discuss the benefits and shortcomings of the straight line method of depreciation

(c) Demonstrate the journal entry postings for the equipment and depreciation

3. If the current rate of interest is 10% and interest is compounded semiannually, what is the

present value of receiving $10,000 at the end of 7 years?