Answer:
The given statement is false
Explanation:
The computation of the depreciation expense using the straight-line method is shown below:
Depreciation expense is
= (Purchase cost - salvage value) ÷ (estimated useful life)
= ($60,000 - $4,000) ÷ (7 years)
= $56,000 ÷ 7 years
= $8,000
The depreciation expense is $8,000 every year
hence, the given statement is false
