Question
Asked Apr 3, 2019
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at the begining 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.

b. record the purchase of the computer system and the depreciaiton expense for the first year under straight line and double decling balance methods in a financial statements model.

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Expert Answer

Step 1

Determine the depreciation expense for the year using straight line depreciation method:

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Step 2

Representation of depreciation expense under straight line method in financial statements model:

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Step 3

Thus, the depreciation expense under straigh...

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