[The following information applies to the questions displayed below) At the beginning of Year 1. Copland 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 Straight line depreciation (2) Double-declining balance depreciation, Double Declining Year 1 Year 2 Year 3 Year 4 Year 5 ! 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 85,000. It is expected to have a five year life and a $15,000 salvage value. 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 designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected event. Enter any decreases to account balances with a minus sign.) Balance Sheet COPELAND DRUGSTORE Statements Model Income Statement Equity Revenue Expense Net Income Retained Earnings Cash Flow Assets Book Value of Comp. Sys 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. General Journal Debit Credit Date Yr 1 ng batance depreciation (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 11 uuu View transaction list Journal entry worksheet