A company purchased new machinery for $50,000 with a useful life of 10 years and a salvage value of $5,000. What is the annual depreciation expense using the straight-line method?

The straight-line method of depreciation allocates the cost of the asset evenly over its useful life. To calculate the annual depreciation expense using the straight-line method, we need to use the following formula:

Depreciation expense = (Asset cost - Salvage value) / Useful life

In this case, the asset cost is $50,000, the salvage value is $5,000, and the useful life is 10 years. So, we can plug these values into the formula:

Depreciation expense = ($50,000 - $5,000) / 10 years
Depreciation expense = $45,000 / 10 years
Depreciation expense = $4,500 per year

Therefore, the annual depreciation expense using the straight-line method is $4,500.