Koffman\'s Warehouse purchased·forklift on January 1 2017, for $6,000. The forkl

Question

Koffman's Warehouse purchased·forklift on January 1 2017, for $6,000. The forklift is expected to last for five years and have a residual value of $600. Ko balance method for depreciation. nan's uses the double de ining Required: 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 dollan Annual Accumulated Year Book Value Depreciation Depreciation 2017 2018 2019 2020 2021

Explanation / Answer

Year Annual Depreciation Accumulated depreciation Book value 2017 $              2,400 $                2,400 $            3,600 2018 $              1,440 $                3,840 $            2,160 2019 $                  864 $                4,704 $            1,296 2020 $                  518 $                5,222 $                778 2021 $                  178 $                5,400 $                600 Depreciation rate on book value=100/5*2=40% 2021 accumulated depreciation is restricted to $ 5,400 ($6000-600)

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