Koffman’s Warehouse purchased a forklift on January 1, 2014, for $6,000. The forklift is expected to last for five years and have a residual value of $600. 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.
2. Prepare the journal entry to record depreciation expense for 2014.
3. Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double-declining-balance method?