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 horizontal statements model.

(2) Double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Compute the depreciation for each of the five years, assuming that the company uses straight-ine depreciation. 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 $120,000. 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 doubledeclining-balance methods in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operoting activity, IA for investing octivity, and FA for financing activity. Leave blank to indicate that an element is not offected by the event. Enter any decreoses to account balances and cosh outflows with a minus sign.)