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com/lrn/takeAssignment/takeAssignment Main.do?inoerassignments& Show Me HowCalltor A diesel-powered tractor with a cost of $291,700 and estimated residual value of $8,200 is expected to have a useful operating life of 75,000 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 Previous Next 8 0

Solution

Solution:

Cost of tractor = $291,700

Residual value = $8,200

Depreciable cost = $291,700 - $8,200 = $283,500

Operating life = 75000 hours

Depreciation rate per hour = $283,500 / 75000 = $3.78 per hour

Total operating hours in april = 200 hours

Depreciation for april = 200 * $3.78 = $756