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Problem 1: A brand's new machine is purchased at the beginning of the year for $60,000. Its useful life is estimated at 6 years with a salvage value estimated at $8,000. Using the straight line method, how much depreciation will be charged to the income statement on an annual basis.
Option 1: $100,000
Option 2: $86,667
Option 3: $89,000
Option 4: $98,667
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