Exercise 11-11 Double-declining-balance method; switch to straight line [LO11-2, 11-6]

On January 2, 2016, 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 $40,375. The expenditures made to acquire the asset were as follows:

Purchase price	$	187,000
Freight charges		4,400
Installation charges		7,000

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

1.	Calculate depreciation for each year of the assets eight-year life.

	Depreciation for the Period				End of Period
Year	Beginning of Period Book Value	Depreciation Rate		Annual Depreciation	Accumulated Depreciation	Book Value
2016			%
2017			%
2018			%		0	0
2019			%
2020						0
2021
2022
2023
Total				$0