Koffman's Warehouse purchased a forklift on January 1, 2012, for $6,000. The forklift is expected to last
Question:
Koffman's Warehouse purchased a forklift on January 1, 2012, for $6,000. The forklift is expected to last for five years and have a residual value of $600. Koffman's uses the double declining- balance method for depreciation.
Required
1. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklift's life.
2. Identify and analyze the effect of the transaction for depreciation for 2012.
3. Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double declining- balance method?
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Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
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