A lorry is bought for a business cost RM17,000. It is expected to last for 5 years and then be sold for scrap for RM2,000. Required: Work out the depreciation to be charged each year under: (a) The straight line method. (4 marks) The reducing balance method (using a rate of 35%). (6 marks) (c) The purpose of depreciation is so an asset can be replaced at the end of its useful life. Do you agree? (4 marks)