At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $270,000. It is expected to have a five-year life and a $40,000 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.

Depreciation Straight Line Expense= 230,000/5= $ 46,000

Explanation:

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Straight Line Method= $270,000- $40,000/5

Depreciation Straight Line Method= 230,000/5= $ 46,000

As it is straight line depreciation each year the depreciation expense will be the same . It will not change and hence will be $ 46,000

Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

Year    Book Value   Dep Rate   Dep Expense   Accu. Dep.   Book Value

1            $ 270,000        40%      $ 108,000     108,000          162,000

2            $ 162000          40%      64,800         172,800            97,200

3              97,200             40%     38,880            211,680          58,320

4              58,320           40%     23328               235,008         34,992

5               32,992         40%       13997              249,005         20,995.2

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know