On January 2, 2024, the Jackson Company purchased equipment to be used in its manufacturing process....

Transcribed Image Text:

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 $45,250. The expenditures made to acquire the asset were as follows: Purchase price Freight charges Installation charges $ 203,500 5,600 8,500 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate depreciation for each year of the asset's eight-year life. Depreciation for the Period Beginning of Year Period Book Value 2024 2025 2026 2027 2028 2029 2030 Depreciation Rate End of Period Annual Depreciation Accumulated Depreciation Book Value % % % % 2031 Total < Required 1 Required 2 > 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 $45,250. The expenditures made to acquire the asset were as follows: Purchase price Freight charges Installation charges $ 203,500 5,600 8,500 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate depreciation for each year of the asset's eight-year life. Depreciation for the Period Beginning of Year Period Book Value 2024 2025 2026 2027 2028 2029 2030 Depreciation Rate End of Period Annual Depreciation Accumulated Depreciation Book Value % % % % 2031 Total < Required 1 Required 2 >