On January $2,2024,$ 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 $$56,625.$ The expenditures made to acquire the asset were as follows:

Purchase price $ $242,000$

Freight charges $8,400$

Installation charges $12,000$

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:

Calculate depreciation for each year of the asset$$s eight$-$year life.

Are changes in depreciation methods accounted for retrospectively or prospectively?

Answer rating: 100% (QA)

Answer To calculate the depreciation for each year of the assets eightyear life using the doubledecliningbalance DDB method and then switching to stra... View the full answer