Exercise #3 What is depreciation of plant assets? What are the factors necessary in computing depreciation? Exercise #4 A company's property records revealed the following information about one of its plant assets: Cost Salvage Purchase Estimated Value Date Life 154,000 15,000 01/01 10 years Depreciation Method Double-declining balance Calculate the depreciation expense in Year 1 and Year 2 for the year ended December 31. Year 1 Year 2 Exercise #5 A company purchased a delivery van on January 1 of the current year at a cost of $40,000. The van is expected to last six years and has a salvage value of $2,200. The company's annual accounting period ends on December 31. 1. What is the depreciation expense for the current year, assuming the straight-line method is used? 2. What is the book value of the van at the end of the first year