Question

A diesel-powered tractor with a cost of $130,960 and estimated residual value of $6,800 is expected...

A diesel-powered tractor with a cost of $130,960 and estimated residual value of $6,800 is expected to have a useful operating life of 64,000 hours. During April, the tractor was operated 200 hours.

Determine the depreciation for the month. If required, carry out any division to two decimal places.

$___________

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Answer #1

Depreciation for useful life=(Cost-Residual value)/Useful Life

=(130960-6800)/64,000

=$1.94/hour

Hence depreciation for month =$1.94*200

=$388.

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