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Company AAA purchased a piece of equipment for $50,000 with a salvage value of $5,000 and an estimated useful life of 10 years. Using the
Company AAA purchased a piece of equipment for $50,000 with a salvage value of $5,000 and an estimated useful life of 10 years. Using the straight-line depreciation method, what is the annual depreciation expense? Explain the concept of straight-line depreciation and how it evenly spreads the cost of the asset over its useful life, reflecting its gradual loss in value over time.
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