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Problem: Module 2 Textbook Problem 14 Learning Objectives: - 2-9 Calculate straight-line depreciation and show how it affects financial statements - 2-10 Calculate double-declining-balance depreciation

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Problem: Module 2 Textbook Problem 14 Learning Objectives: - 2-9 Calculate straight-line depreciation and show how it affects financial statements - 2-10 Calculate double-declining-balance depreciation and show how it affects financial statements At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $85,000. It is expected to have a five-year life and a $15,000 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 doubledeclining-balance methods in a financial statements model. 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-line depreciation. 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 declining-balance methods in a financial statements model. 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 depreci (Leave no cells blank - be certain to enter " 0 " wherever required.) (2) Double-declining-balance depreciation. b. Record the purchase of the computer system and the depreciation expense for the first year under straight declining-balance methods in a financial statements model. Complete this question by entering your answers in the tabs below. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operati investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. to account balances and cash outflows with a minus sign. Not all cells will require entry.)

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