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on january 1, 2022, woodstock, inc. purchased a machine costing $40,000. woodstock also paid $1,000 for transportation and installation. the expected useful life of the machine is 6 years and the residual value is $5,000. how much is the annual depreciation expense assuming use of the straight-line depreciation method?

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abiolataiwo2015

If on january 1, 2022, woodstock, inc. purchased a machine costing $40,000. woodstock also paid $1,000 for transportation and installation. the annual depreciation expense assuming use of the straight-line depreciation method is $6,000.

How to find the annual depreciation?

Using this formula to find the annual depreciation

Annual depreciation = Cost of assets - Residual value/ Expected useful life

Let plug in  the formula

Annual depreciation = ($40,000+$1,000) - $5,000/ 6years

Annual depreciation = $41,000 - $5,000/ 6years

Annual depreciation = $36,000 / 6 years

Annual depreciation = $6,000

Therefore the Annual depreciation  is $6,000.

Learn more about Annual depreciation here:https://brainly.com/question/27971176

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