on January 2nd 2016 the Jackson company purchased equipment to be used in its manufacturing process the equipment has an estimated life of 8 years and an estimated residual value of $30,625 expenditures made to acquire the assets were as follows

purchase price $154,000 Freight charges $2,000 installation charges $4,000

Jackson's policy is to use the double declining balance method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipments life.

1. calculate depreciation for each year of the assets eight-year life

2. discuss the accounting treatment of the depreciation on the equipment