(a) Consider the following data on an automobile: Cost Basis of the asset, I = $10,000 Useful Life, N = 5 years Estimated salvage value, S = $2,000 Use the straight-line depreciation method to compute the annual depreciation allowances and the resulting book values.

(b) Consider the following accounting information for a computer system: Cost Basis of the asset, I = $10,000 Useful Life, N = 5 years Estimated salvage value, S = $778 Use the double-declining-depreciation method to compute the annual depreciation allowances and the resulting book values