Koffmans Warehouse purchased a forklift on January 1, 2016, for $5,000. The forklift is expected to last for five years and have a residual value of $500. 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?