1. A non-current asset costs 10,000. It has an expected useful economic life of 5 years and a residual value of 2,000.
2. Calculate depreciation for the first 2 years using the straight line and reducing balance methods (reducing balance at a rate of 20%) and complete the following table.

	Straight line method	Reducing balance method
Cost
Accumulated Depn
Net Book Value @Year 1
Accumulated Dep
Net Book Value @Year 1