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At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year life and a $7,000 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. Compute the depreciation for each of the five years, assuming that the company uses straight-line depreciation Straight line Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Req A2 > Reg A1 Reg A2 ReqB 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 "O" wherever required.) Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 Reg. 41 Rocus Record the purchase of the computer system and the depreciation expense for the first year under straight-line and doubl balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operating act Investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter an to account balances and cash outflows with a minus sign. Not all cells will require entry) Balance Sheet COPELAND DRUGSTORE Horizontal Statements Model Income Statement Stockholders' Equity Net Revenue Retained Expenses Income Earnings Assets Statement of Cash Flows Book Value of Cash Computer System Purchase of computer system Straight-Line Depreciation + Double-Declining-Balance Depreciation 1

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