Accelerated Depreciation

Koffman's Warehouse purchased a forklift on January 1, 2017, for $530,000. 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:

Question Content Area

1a. 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

1b. Identify and analyze the effect of the transaction for depreciation for 2017.

Activity is:

A. Operating

B. Investing

C. Financing

Accounts are:

A. Depreciation Expense Increases, Accumulated Depreciation Increases

B. Depreciation Expense Increases, Accumulated Depreciation Decreases

C. Depreciation Expense Decreases, Accumulated Depreciation Increases

D. Depreciation Expense Decreases, Accumulated Depreciation Decreases