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Problem: Module 2 Textbook Problem 14 Learning Objectives: 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 $250,000. It is expected to have a five-year life and a $40,000 salvage value. Required 3. 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. Reg A1 REQAZ Req 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 Kalentemente Modal Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the depreciation for each of the five years, assuming that the company uses double-declining (Leave no cells blank - be certain to enter "0" wherever required.) Double-Declining Balance $ Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ 100,000 60,000 36,000 $ Complete this question by entering your answers in the tabs below. Reg A1 Reg 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 Balance Sheet Income Statement Stockholders Assets Equity Statement of Cash Flows Book Value Revenue Retained Expenses Net Income Cash + of Computer Earnings System Purchase of computer system Straight-Line Depreciation Double-Declining-Balance Depreciation