Dino's After School has an asset, a workstation where customers can find school homework assignments and hints for the correct answers. Its original cost was $12,700 and it has a salvage value of $1, 270 and 7 years of useful life.

1. Calculate the annual depreciation expense under the straight-line method.
2. Assume depreciation rate under the Double Declining Balance Method to be 30%, then calculate the annual depreciation for each year (using the Double Declining Balance Method), and find the book value of the asset at the end of the 7th year
3. Explain how the depreciation amount is included on the balance sheet, and why it is needed for the balance sheet. (50-100 words)