On 1 January 2006, Norris Company purchased equipment for $42,000. Norris also paid $1,200 for shipping and installation. The equipment is expected to have a useful life of 10 years and a salvage value of $3,200.

1. (a) Calculate the depreciation expense for the years 2006 through 2008, using the straight-line method.

2. (b) Calculate the depreciation expense for the years 2006 through 2008, using the double- declining balance method.

3. (c) What is the book value of the equipment at the end of 2008 under each method?

You are required to show your workings clearly.