On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $30,625. The expenditures made to acquire the asset were as follows:

Purchase price ....................$ 154,000
Freight charges ..........................2,000
Installation charges ..................4,000

Jackson’s policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment’s life and then switch to straight line halfway through the equipment’s life.

Required:
1. Calculate depreciation for each year of the asset’s eight-year life.
2. Are changes in depreciation methods accounted for retrospectively or prospectively?