At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $240,000. It is expected to have a five-year life and a $40,000 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.

Req A1 Req A2 R Compute the depreciation for eac Straight-line Depreciation $ 40,000 Year 1 Year 2 Year 3 Year 4 Year 5 Req A1 Req A2 ReqB Compute the depreciation for each of the five year (Leave no cells blank - be certain to enter "0" whe Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 Req A1 Reg A2 Req B Record the purchase of the computer system and the depreciation expense for the first year under str balance methods in a financial statements model. (In the Cash Flow column, indicate whether the iter investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave th to account balances and cash outflows with a minus sign. Not all cells will require entry.) COPELAND DRUGSTORE Horizontal Statements Model Balance Sheet Income Statement Stockholders' Assets Equity Book Value Revenue Expenses Net Income Retained Cash + of Computer Earnings System Purchase of computer system Statement of Cash Flows Straight-Line Depreciation + Double-Declining-Balance Depreciation +