Note, please respect Canadian IFRS, not US GAAP.

1.In general, terms, explain the reason/purpose for depreciation as an accounting activity. What does depreciation accomplish/avoid?

2.Again, in general terms, name and briefly describe the three types of depreciation covered in the course. How does a business decide (what criteria) which method of depreciation to use for a given asset?

3.Given that the sale of an asset can result in a "Gain or Loss on Disposal", do these Gains/Losses represent something that investors/shareholders should be concerned about with regards to evaluating good or bad management performance? Why or why not?