Compute depreciation for each year of assets eight-year life

Reference no: EM131881623

Problem

On January 2, 2013, 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         $145,000
Freight charge              2,000
Installation charge        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 hallway through the equipment's life. Calculate depreciation for each year of the asset's eight-year life.

Reference no: EM131881623

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