Answer:$26,386.60
Explanation: According to the question above, Tommy is able to depreciate his tractor valued at $50,000 with depreciation rate of 12% per year.
Cost is $50,000
depreciation rate is 12% per annum
First year= 50,[email protected]% = 50,000-6000= 44,000
Second year = 44,[email protected]% = 44,000-5280=38,720
Third year = 38,720 @ 12% = 38,720 - 4646.40 = 34,073.60
Forth year = 34,073.60 @ 12% = 34,073.60-4088.83 =29,984.77
Fifth year= 29,984.77 @12%= 29984.77 - 3,598.17=26,386.60
The value of the Tractor in five years is $26,386.60
