Question 3 Depreciation (20 marks) There are several methods for determining the amount of capital depreciation. Explain in a concise manner two of these methods and list a few of the advantages and disadvantages for each of them. (a) A pump was purchased for $20,000. If it is depreciated by 4% using the sinking fund method, what would be its annual depreciation charge if the book value of the property after 8 years is the same as if it had been depreciated at $2000 per year by the straight line method? (b) 14