At the beginning of 2014, Metal Manufacturing purchased a new computerized drill press for $140,000. It is expected to have a five-year life and a $20,000 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. (Round your answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "0" wherever required.)

b.

Record the purchase of the drill press and the depreciation expense for the first year under the straight-line and double-declining-balance methods in a financial statements model like the following one: In the Cash Flow column, use OA to designate an operating activity, IA for an investment activity, FA for a financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)