Question 4: Straight-Line Depreciation DWR, Inc., purchased a building for $600,000. Straight-line depreciation was used for each of the first two years using the following assumptions: 25-year estimated useful life, with a residual value of $100,000.

4.1. Define and explain straight line depreciation and define and explain the double declining depreciation method.

4.2.Calculate the annual depreciation for the first two years that DWR owned the building.

Question 5:

5.1. Define Earnings per share, explain what Earnings per share tell you and why is it important to look at earnings per share?

5.2. What is the ratio (Formula) for earning per share?