Assume that on March 15^th, Edward Snips purchased a hair washing station and paid $3,330.88 which included both PST and GST.

The installation of the sink cost $581.70 which included GST only.

The useful life of the asset is estimated at 8 years and the salvage value is $500.

Required:

1. Create the journal entries for both the purchase of the asset and the installation.

2. Calculate the annual depreciation for years 1, 2 and 3 under the following methods:

1. Straight line method
2. Double Declining Balance