Question 5: You can choose to do ONE of the following questions on PPE asset: (You can use the Excel templates) 1. If Quick Company used Double Declining Balance (DDB) depreciation method instead of straight-line, calculate the following: a) Depreciation expense each year b) Accumulated depreciation each year c) Net book value each year d) Impairment loss (if any) at the end of year 4 e) Comparing the impairment loss in d) with the impairment loss we calculated in class under the straight-line method, discuss the implication. Quick Company acquired a piece of equipment in Year 1 at a cost of $100,000. The equipment has a 10-year estimated life, zero salvage value, and is depre- ciated on a straight-line basis. Technological innovations take place in the in- dustry in which the company operates in Year 4. Quick gathers the following information for this piece of equipment at the end of Year 4: Expected future undiscounted cash flows from continued use $59,000 Present value of expected future cash flows from continued use 51,000 Net selling price in the used equipment market . . 50,000 2. As a result of the decline in crude oil price environment, Mooncor Energy Inc. performed impairment tests on its Oil Sands segment as at December 31, 2015. The long-term assets of the CGU has a net book value of $2.2 billion. The company based its cash flow projections on WTI oil price. Fair value 1,700 M Expected cash flow 2016 400 M