At the beginning of Year 1, Copeland drugstore purchased a new computer system for $270,000. 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. Straight-Line depreciation $ 46,000 (2) Double-declining balance depreciation. (Leave no cells blank - be certain to enter "0" wherever required.) Double-Declining Balance $ 108,000 Year 1 Year 2 Year 3 Year 4 Year 5 $ 0 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 Equity Revenue - Expenses - Net Income Book Value Retained of Computer Earnings Statement of Cash Flows Cash Straight-Line Depreciation Double-Declining-Balance Depreciation