Adelp tractor witcost of S108460 and estimated residual vove

Ad-?el-p tractor wit,?cost of S108,460 and estimated residual vove o, S6.700 is expected to have a use4l eperaeng lfe of 48,000 hours. Onng Febrwy, the Determine the deprecation for the month. required, carry out any division to teo decimal places

Solution

Estimated cost of tractor = 108460

Residual value = 6700

Useful operating life = 48000 hours

Tractor operated in February = 300 hours

Depreciation for the month of February =

(Cost of asset - Residual value)*(operating hours in month/Total operated hours)

= (108460-6700)*(300/48000)

= 101760*0.00625 = 636

Depreciation for the month of February = 636