At the beginning of Year Copeland Drugstore purchased a new computer system for $ It is expected to have a fiveyear life
and a $ salvage value.
Required
a Compute the depreciation for each of the five years, assuming that the company uses
Straightline depreciation.
Doubledecliningbalance depreciation.
b Record the purchase of the computer system and the depreciation expense for the first year under straightline and double
decliningbalance methods in a financial statements model.
Complete this question by entering your answers in the tabs below.
Req A
Req B
Record the purchase of the computer system and the depreciation expense for the first year under straightline and doubledeclining
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.
