E-2 Pharmacy Management Services has bought a vehicle for its field team. The purchase price was $120,000 and a GPS system was installed for $2000. The vehicle will be used for 7 years when it will be sold for an estimated value of $30,000.

(i) Calculate the Depreciation Expense using the three (3) methods approved by GAAP . (ii) (ii) Discuss how Depreciation applies to a company and how its calculation influences Financial Reporting does.