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2. Assume you bought a tractor with a cost of $30,000, a salvage value of $5,000, and a useful life of 10 years at the

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2. Assume you bought a tractor with a cost of $30,000, a salvage value of $5,000, and a useful life of 10 years at the beginning of year one. Given this information, answer the following questions. (24 points) a. Given the tractor with a cost of $30,000, a salvage value of $5,000, and a usefinl life of 10 years, calculate the annual depreciation, R5, and book value using the straight-lime method. Show your work! (Hint: R5 and Annual depreciation are the same each year) ( 10 points) b. Given the tractor with a cost of $30,000, a salvage value of $5,000, and a useful life of 10 years, calculate the amual depreciation, Rd, and book value using the double declining balance method. Show your work! (Hint: Rd is the same each year, You need to adjust the book value for year 10 and annual depreciation for year 9). (12 points) c. How much is the fotal depreciation over ten years? (2 points)

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