Financial Reporting and Analysis 5. A company buys an asset for $50,000, salvage value $2,500. The asset is to be depreciated over 12 years using the double declining balance method. What is the net book value and depreciation charge for year-end 9? 6. Assuming a period of rising prices and stable or increasing inventory levels, a company that uses FIFO for valuation of inventory, as opposed to LIFO, will likely have lower: A. Pre-tax cash flow. B. Current ratio. C. Asset turnover. Explain your