On April 1, 2019, Graham Inc. acquired a new machine for $80,000. Its estimated useful life is eight years with an expected salvage value of $8,000. Assuming straight-line depreciation, 2019 depreciation expense is:

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The straight-line depreciation expense is calculated by subtracting the salvage value from the cost of the asset and then dividing by the useful life. For this machine, ($80,000 - $8,000) / 8 = $9,000 per year. However, since the machine was acquired on April 1, only 9 months of depreciation should be accounted for in 2019. Therefore, the depreciation expense for 2019 is $9,000 * (9/12) = $6,750.