Accelerated Depreciation Koffman's Warehouse purchased a forklift on January 1, 2017, for $560,000. The forklift is expected to last for five years and have a residual value of $11,000. 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. If necessary, round any depreciation calculations to the nearest dollar. Year Annual Depreciation Accumulated Depreciation Book Value 2017 2018 2019 2020 2021 2. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, l.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Assets Balance Sheet Stockholders' Liabilities Equity R 3. Refer to Exhibit 8-2. What factors may have influenced Koffman's to use the double-declining-balance method? Koffman's may believe that the double-declining-balance method asset. Koffman's may also choose this method because it allows years of the asset life and thus with the revenues produced by the depreciation to be taken in the early taxes until the later years.