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On January 2,2021, the Jackson Company purchased equipment to be used in...

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Accounting

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