Exercise 5: Change in Depreciation Method

On January 4, 2018, LJ Company purchased equipment at a cost of $250,000. The equipment has an estimated useful life of six years and an estimated salvage value of $40,000. LJs policy is to use the double-declining method of depreciation in the early years of the equipments life and then switch to straight-line halfway through the equipments life.

Required: Calculate depreciation for each year of the assets six-year life. Round answers to the nearest whole dollar.

Year	Calculation	Depreciation Expense	Accumulated Depreciation	Book Value (Cost Acc. Depr.)
2018
2019
2020
2021
2022
2023