Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 37)

A company buys a machine for $50,000. It has an estimated useful life of 5 years and a salvage value of $5,000. What is the annual depreciation expense using the straight-line method?
$9,000
$10,000
$11,000
$50,000

Explanation

($50,000 - $5,000) / 5 years = $9,000

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