Koffman's Warehouse purchased a forklift on January 1, 2017, for $650,000. The forklift is expected to last for five years and have a residual value of $13,000. 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. If necessary, round any depreciation calculations to the nearest dollar. Annual Accumulated Year Book Value Depreciation Depreciation 2017 2018 2019 2020 2021 2. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Accounts Statement(s)
Koffman's Warehouse purchased a forklift on January 1, 2017, for $650,000. The forklift is expected to last for five years and have a residual value of $13,000. 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. If necessary, round any depreciation calculations to the nearest dollar. Annual Accumulated Year Book Value Depreciation Depreciation 2017 2018 2019 2020 2021 2. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Accounts Statement(s)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.4E
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