Moira is a florist who has recently started her own business. She is used to calculating depreciation for her business assets for accounting purposes, using either the straight-line or diminishing value method. She has learned that for tax purposes a third method, the pool method, is permittable. However, she is not sure what this method entails or when it can be used.

Required:

1. Explain the pool method to Moira. You should include an explanation of what the pool method is and how the pool method is calculated.

2. Discuss some possible benefits for Moira if she uses the pool method to depreciate some of her assets.

3. After your explanation, Moira is convinced that using the pool method for depreciation for tax purposes would be advantageous for her. She has recently purchased two delivery vans for $25,000 each, and she would like to create a depreciation pool for the vans. Explain whether Moira can create a pool for these assets.