g On January 1, a machine with a useful life of four years and a salvage value of $13000 was purchased for $77000. What is the depreciation expense for year 2 under straight-line depreciation

Annual depreciation= $16,000

Explanation:

Giving the following information:

Purchase price= $77,000

Useful life= 4 years

Salvage value= $13,000

Under the straight-line method, the depreciation expense remains constant during the life of the asset.

To calculate the depreciation expense, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (77,000 - 13,000) / 4

Annual depreciation= $16,000

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.