At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is expected to have a five-year life and a $30,000 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. Straight-line Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 COPELAND DRUGSTORE Horizontal Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Statement of Cash Flows Revenue Net Income Expenses = Book Value of = Cash + Computer System Purchase of computer system Retained Earnings + = Straight-Line Depreciation + Double-Declining-Balance Depreciation + 11