Required information Exercise 8-9 A Computing and recording straight-line versus double-declining-balance depreciation LO 8. 2, 8-3 (The following information applies to the questions displayed below.) At the beginning of Year 1, Copland Drugstore purchased a new computer system for 250,000. It is expected to have a five-year life and a $40,000 salvage value. Exercise 8-9A Part b 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 like the following one: (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Balance Sheet COPELAND DRUGSTORE Statements Model Income Statement Equity Revenue - Expense Net Income Retained Earnings L . Cash Flow (250,000) A Assets Book Value of Cash Comp Sys. (250,000) - 250.000 - Straight-line depreciation 1. Double-declining balance depreciation - $ 42,000