At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $140,000. It is expected to have a five-year life and a $20,000 salvage value.

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), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)

Required information [The following information applies to the questions displayed below.) At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $140,000. It is expected to have a five-year life and a $20,000 salvage value. 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), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) COPELAND DRUGSTORE Horizontal Statements Model Balance Sheet Income Statement Stockholders' Assets Statement Equity Net Book Revenue - Expenses of Cash Cash + Value of Retained Income Flows Earnings Computer II Straight-Line Depreciation Double-Declining-Balance Depreciation +