On January 2, 2018, 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 $63,125. The expenditures made to acquire the asset were as follows:

Purchase price	$	264,000
Freight charges		10,000
Installation charges		14,000

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:

Calculate depreciation for each year of the assets eight-year life.

On January 2, 2018, 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 $63,125. The expenditures made to acquire the asset were as follows Purchase price Freight charges Installation charges $264,000 10,000 14,000 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: 1. Calculate depreciation for each year of the asset's eight-year life Depreciation for the Perioc End of Period Beginning of Period Book Depreciation Annual Accumulated Depreciation Depreciation Book Value Year Rate 25 % 25 % 251% 25% Value 2018 2019 2020 2021 2022 2023 2024 2025 Total $288,000 216,000 162,000 121,500 91,125 0 0