At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year life and a $7,000 salvage value.

Required

1. Compute the depreciation for each of the five years, assuming that the company uses

1. (1) Straight-line depreciation.

1. (2) Double-declining-balance depreciation.

2. 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.