At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $120,000. 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. 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. Reg A1 Reg A2 Reg B Compute the depreciation for each of the five years, assuming that the company uses straight-line depreciation. Straight-line Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Reg A1 Req A2 Reg 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 DRUGSTORE Horizontal Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Statement of Cash Flows Revenue Net Income Expenses = + Retained Earnings Book Value of Cash Computer System Purchase of computer system 120,000 Straight-Line Depreciation Double-Declining-Balance Depreciation