Equipment is purchased today for use over the next 8 years. The purchase price of the equipment today is $557,000. The salvage value in 8 years is $41,820. Your accountant has decided to depreciate the equipment using a straight-line depreciation method for determining book values.

a) What is the depreciation charge in the 8th year?

b) Your accountant changes her mind and decides to use the Double Declining Balance depreciation method to determine book value. With this change made, what is the depreciation charge in the 8th year?

c) For tax purposes, the equipment is depreciated using the Canadian Capital Cost Allowance method at a rate of 30%. For tax purposes, what is the depreciation charge in the 4th year?