Accelerated Depreciation

Koffman's Warehouse purchased a forklift on January 1, 2017, for $640,000. The forklift is expected to last for five years and have a residual value of $15,000. Koffman's uses the double-declining-balance method for depreciation.

Required:

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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.

2.Identify and analyze the effect of the transaction for depreciation for 2017.

How does this entry affect the accounting equation?