Memory Sdn Bhd bought a lorry for business at cost of RM$17,000.$ The lorry is

expected to depreciate at $35\%$ per annum and then be sold for scrap for RM$2,000.$

The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as

following:

Year RM

$15,950$

$23,868$

$32,514$

$41,634$

$51,034$

Required:

a$.$ Identify the depreciation method used by Memory Sdn Bhd $($show relevant

workings$).(10$ marks$)$

b$.$ Explain the suitability of the depreciation method. $(5$ marks$)$