Koffman's Warehouse purchased a forklift on January 1, 2017, 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. Round amounts to the nearest dollar.

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 depreciation for 2017.

3. Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double-eclining balance method?