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A diesel-powered tractor with a cost of $114,040 and estimated residual value of $6,000 is expected to have a useful operating life of 74,000 hours. During April, the tractor was operated 100 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places.

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Answer:

the depreciation for the month is $146

Step-by-step explanation:

The computation of the depreciation expense per month is as follows:

= (Cost - residual value) ÷ operating life × number of hours operated

= ($114,040 - $6,000) ÷ 74,000 hours × 100 hours

= $146

Hence, the depreciation for the month is $146

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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