At the beginning of 2016, Copland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year life and a $7,000 salvage value. 2.a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation.

Sure, here's the computation for depreciation using straight-line and double-declining-balance methods:

1.Straight-Line Depreciation:

Straight-line depreciation distributes the cost of the asset evenly over its useful life.

The formula for straight-line depreciation is:

Annual Depreciation = Cost of Asset − Salvage Value / Useful life 

Given:

Cost of asset = $52,000

Salvage value = $7,000

Useful life = 5 years

Annual Depreciation = 52,000 - 7,000 / 5

Annual Depreciation = 45,000/ 5

Annual Depreciation= 9,000

Therefore, the annual depreciation using straight-line method is $9,000 for each of the five years.

2.Double-Declining-Balance Depreciation:

Double-declining-balance depreciation method accelerates the depreciation expense. It calculates depreciation by applying a fixed rate (twice the straight-line rate) to the book value of the asset.

The formula for double-declining-balance depreciation is:

Depreciation Expense = Book Value at Beginning of Year × Double Declining Rate

The double declining rate is 2 / Useful Life 

For each year:

Calculate the double declining rate: 2 / 5 = 0.4

Calculate depreciation expense using the formula

Year 1:

Depreciation Expense = 52,000 × 0.4 = 20,800

Year 2:

Depreciation Expense = (Book Value at Beginning of Year 1− Depreciation Expense Year 1)×0.4

Depreciation Expense = (52,000−20,800)×0.4 = 18,528

Year 3:

Depreciation Expense = (Book Value at Beginning of Year 2 − Depreciation Expense Year 2) × 0.4

Depreciation Expense = (52,000 − 20,800 − 18,528) ×0.4 = 11,117

Year 4:

Depreciation Expense = (Book Value at Beginning of Year 3 − Depreciation Expense Year 3) × 0.4

Depreciation Expense = (52,000 − 20,800 − 18,528 − 11,117) × 0.4 = 6,670

Year 5:

Depreciation Expense = (Book Value at Beginning of Year 4 − Depreciation Expense Year 4) × 0.4

Depreciation Expense = ( 52,000 − 20,800 − 18,528 − 11,117 − 6,670) × 0.4 = 3,258

These amounts represent the depreciation expense for each respective year using the double-declining-balance method.

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