Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 23)

A company buys a new machine for $10,000. The machine's estimated useful life is 5 years, and the estimated salvage value is $1,000. What is the annual depreciation expense using the straight-line method?
$1,600
$2,000
$1,800
$10,000

Explanation

($10,000 - $1,000) / 5 = $1,800

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