Introduction to Adjusting Journal Entries and Prepaid Expenses

3. Accrual Accounting Concepts / Introduction to Adjusting Journal Entries and Prepaid Expenses / Problem 3

Problem 3

A company purchases a machine for \$50,000 with a useful life of 10 years. Using straight-line depreciation, what is the annual depreciation expense?

\$50,000

\$10,000

\$2,500

\$5,000