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At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $85,000....

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Accounting

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 double-
declining-balance methods in a financial statements model.
Complete this question by entering your answers in the tabs below.
Req A2
Req 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. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an
investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter any decreases
to account balances and cash outflows with a minus sign. Not all cells will require entry.)
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