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Mamont248 [21]
3 years ago
12

A diesel-powered tractor with a cost of $186,240 and estimated residual value of $5,700 is expected to have a useful operating l

ife of 59,000 hours. During April, the tractor was operated 200 hours.
Business
1 answer:
scoundrel [369]3 years ago
7 0

Answer:

$612

Explanation:

To compute the depreciation, first we have to compute the depreciation per hour which is given below:

= (Cost of diesel-powered tractor  - estimated residual value) ÷ (useful operating life)

= ($186,240 - $5,700) ÷ (59,000 hours)

= ($180,540) ÷ (59,000 hours)

= $3.06 per hour

Now the depreciation would be

= Operated hours  × depreciation per hour

= 200 units × $3.06

= $612

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