Question 2 Pendlebury Construction Limited purchases a concrete mixer lorry for 31 500 on 1st January 2021. The lorry has an estimated economic life of 4 years and an expected residual value at the end of that life of 7560. Required: a) Calculate the annual depreciation charge on the concrete mixer lorry by applying the straight line depreciation method. b) Calculate the annual depreciation charge on the concrete mixer lorry by applying the reducing balance method at a rate of 30 per cent per annum. Discuss how depreciation affect the three financial statements