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Adjusting Entries: Depreciation

3. Accrual Accounting Concepts / Adjusting Entries: Depreciation / Problem 3

Problem 3

A company purchases a machine for \$60,000 with a useful life of 12 years. What is the annual depreciation expense using the straight-line method?

A

\$7,000

B

\$5,000

C

\$4,000

D

\$6,000