Required information (The following information applies to the questions displayed below.] At the beginning of Year 1. Copland 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 (2) Double-declining-balance depreciation. Double- Declining Year 1 Year 2 Year 3 Year 4 Year 5 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 like the following one: (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) COPELAND DRUGSTORE Statements Model Income Statement Equity Revenue Expense Net Income Retained Earnings Balance Sheet Assets Book Value of Comp. Sys. + Cash Flow Cash + Straight-line depreciation + Double-declining-balance depreciation + c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record depreciation expense. Note: Enter debits before credits. Date General Journal Debit Credit Yr. 1 (2) Double-declining balance depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record depreciation expense for year 1. > 2 Record depreciation expense for year 2. 3 Record depreciation expense for year 3. 4 Record depreciation expense for year 4. 5 Record depreciation expense for year 5. Credit Note : = journal entry has been entered