- 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 $300,000. 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. (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. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double-declini balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter any decre to account balances and cash outflows with a minus sign., Not all cellis will require entry.) ompute the depreciation for each of the five years, assuming that the company uses straight-line depreciation. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. (Leave no cells blank - be certain to enter " 0 " wherever required.)