An asset purchased for $100,000 on the first day of the fiscal year with a useful life of 5 years has an annual depreciation expense of $20,000.

Name: An asset purchased for $100,000 on the first day of the fiscal year with a useful life of 5 years has an annual depreciation expense of $20,000.
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The annual depreciation expense is calculated by dividing the cost of the asset ($100,000) by its useful life (5 years), which would be $20,000 per year.

An Asset Purchased for $100,000 on the First Day of the Fiscal