Question 3 Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then be sold for scrap for RM2,000. The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as following: Year RM 1 5,950 2 3,868 3 2,514 4 1,634 5 1,034 5 Required: (a) Explain the depreciation method used by Maxim Sdn Bhd (show relevant workings). (b) Explain the suitability of the depreciation method. [3 marks] [5 marks]