Koffmans Warehouse purchased a forklift on January 1, 2016, for $90,000. The forklift is expected to last for five years and have a residual value of $9,000. Koffmans uses the doubledeclining- balance method for depreciation.

Required:

1.	Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklifts life.
2.	Prepare the journal entry to record depreciation expense for 2016.
3.	Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double-declining balance method?

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

Koffman may believe that the double-declining-balance method best of the asset with the revenues produced by the asset. Koffman may also choose this method because it allows depreciation to be taken in the early years of the asset life and thus taxes until the later years.