1. (NOTE: You do not need a cash flow diagram for this problem.) Chemcut Corporation purchased new office furniture with an estimated useful life of 12 years. Cost of the furniture was $25,000 and the salvage value was estimated to be $2200 at the end of its useful like.

a) For your company financial records, you use the 200% declining-balance depreciation method. What is the depreciation amount you would record in your company financial records for the 3rd year of the assets life?

b) If instead you use the straight-line method of depreciation, what would be the depreciation amount you would record in you company financial records for the 3rd year of the assets life? How much depreciation would you record in the 12th year of the assets life?

Answer in format below (Please) Please show all work:

1. Cash flow diagram of your problem (unless stated otherwise)

2. Specify the model/equation used [e.g. P=F(1+i)-N ]

3. Specify the values of each parameter [e.g. i=0.05 or 5% ]

4. Show your work for how you calculate your numerical results.

5. Report dollar value with cents (e.g. $253.12),

6. Answer the question of the problem with a complete sentence that includes your numerical justification.