Accelerated Depreciation Koffman’s Warehouse purchased a forklift on January 1, 2010, for $6,000. The forklift is expected to last for fi ve 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 expense for 2010.
3. Refer to Exhibit 8-2. What factors may have infl uenced Koffman to use the doubledeclining-
balance method?AppendixLO1