At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $250,000. It is expected to have a five-year life and a $40,000 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 ReqB Compute the depreciation for each of the five years, assuming that the company uses str. Straight-line Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 NEGA Reg A2 > At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $250,000. It is expected to have a five-year life and a $40,000 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 Req B Compute the depreciation for each of the five years, assuming that the company uses doi (Leave no cells blank - be certain to enter "O" wherever required.) Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 BBS Complete this question by Req A1 Reg A2 Req B Record the purchase of the computer system and the depreciation expense for the first ye balance methods in a financial statements model. (In the Cash Flow column, indicate whe investing activity (IA), or a financing activity (FA). If an element is not affected by the ev to account balances and cash outflows with a minus sign. Not all cells will require entry.) Staten Cash COPELAND DRUGSTORE Horizontal Statements Model Balance Sheet Income Statement Stockholders' Assets Equity Book Value = Retained Revenue Expenses = Net Income Cash + of Computer System Earnings Purchase of computer system 1+1 Straight-Line Depreciation = i Double-Declining-Balance Depreciation - + In a financial statements model. (In the Cash Flow column, indicate whether the item i (IA), or a financing activity (FA). If an element is not affected by the event, leave the ies and cash outflows with a minus sign. Not all cells will require entry.) COPELAND DRUGSTORE Horizontal Statements Model nce Sheet Income Statement Stockholders' Equity Value = Retained Revenue Expenses = Net Income aputer Earnings em system Statement of Cash Flows = Lion = ce Depreciation =
