QUESTION 10 A company purchases a piece of machinery costing $2,800.000 having a 7 year useful life and a 5700,000 residual value. Using the straight line method of depreciation, what is annual depreciation expense? $400,000 $300,000 $700,000 QUESTION 11 Depreciation only affects a company s income statement. O True False QUESTION 12 From the above problem, how much is accumulated depreciation after year 3? O $1.900.000 $1,600.000 O $1.300.000