Depreciation is a process to allocate the cost of long-life assets to each period's income statement and adjusts the value of the asset on the balance sheet. (1) Explain how the Double-declining-balance method is computed (10 points) and (2) provide an example of how this method could be used on a new delivery truck purchased for $30,000 to be used for 4 years with a salvage value of $5,000 for year one only. (15 points)