Question #4 Asset Depreciation (20%): (a) Using straight - line depreciation, what is the book value after four years for an asset costing $ 150 000 that has a salvage value of $ 25 000 after 10 years? What is the depreciation charge in the sixth year? (b) Using declining - balance depreciation with the depreciation rate being d = 30%, what is the book value after five years for an asset costing $ 150 000? What is the depreciation charge in the sixth year? (c) What is the depreciation rate using declining - balance for an asset costing $ 150 000 that has a forecasted salvage value of $ 50 000 after 10 years? (d) If your company had the option to choose one of the two depreciation methods, which would you choose and why? TIP: Annly the depreciation accounting formulation from Chanter 2 of the textbook