At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It...

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At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is expected to have a five-year life and a $30,000 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 A1 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.) Show less COPELAND DRUGSTORE Horizontal Statements Model Income Statement Balance Sheet Assets Cash + Book Value of = Computer System Stockholders' Equity Retained Earnings Statement of Cash Revenue Expenses = Net Income Flows Purchase of computer system + Straight-Line Depreciation + = Double-Declining-Balance Depreciation + = < Req A2 Req B At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is expected to have a five-year life and a $30,000 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 A1 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.) Show less COPELAND DRUGSTORE Horizontal Statements Model Income Statement Balance Sheet Assets Cash + Book Value of = Computer System Stockholders' Equity Retained Earnings Statement of Cash Revenue Expenses = Net Income Flows Purchase of computer system + Straight-Line Depreciation + = Double-Declining-Balance Depreciation + = < Req A2 Req B

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Req A1 Compute the depreciation for each of the five years assuming that the company uses straightli... View the full answer