14 Problem: Module 2 Textbook Problem 14 Learning Objectives: 0.5 points 2-9 Calculate straight-line depreciation and show how it affects financial statements 2-10 Calculate double-declining-balance depreciation and show how it affects financial statements At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $290,000. It is expected to have a five-year life and a $40.000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation. b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double- declining-balance methods in a financial statements model. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tab Req A1 Req A2 Req B Compute the depreciation for each of the five years, assuming that t Year 1 69 69 Year 2 Straight-line Depreciation $ 50,000 50.000 S 50.000 S 50.000 $ 50.000 Year 3 Year 4 Year 5 14 Complete this question by entering your answers in the 2.5 points Req A1 Req A2 Red B Compute the depreciation for each of the five years, assuming tha (Leave no cells blank - be certain to enter "0" wherever required.) Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 Req A1 Req A1 Req A2 Req B Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double-declining- balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Show less COPELAND DRUG STORE Horizontal Statements Model Balance Sheet Income Statement Stockholders' Assets Equity Net Book Value of = Revenue Expenses Retained Income Cash Computer Earnings System Purchase of computer system Statement of Cash Flows E Straight-Line Depreciation = Double-Declining-Balance Depreciation + - - mar