The annual depreciation expense calculated using the straight-line method is $4,000, not $5,000. Therefore, the statement is false.
The question presents a scenario where a computer workstation with a cost of $35,000, an expected life of 7 years, and an expected salvage value of $7,000 is being depreciated using the straight-line method. To calculate the annual depreciation expense using the straight-line method, we subtract the salvage value from the original cost and then divide by the expected life of the asset.
The formula is as follows:
Annual Depreciation Expense = (Cost - Salvage Value) / Useful Life
Therefore, the annual depreciation expense will be: (\$35,000 - \$7,000) / 7 = \$28,000 / 7 = \$4,000 per year. The statement that the depreciation expense using the straight-line method will be \$5,000 per year is false.