Connect with experts and get insightful answers to your questions on IDNLearn.com. Join our Q&A platform to receive prompt and accurate responses from knowledgeable professionals in various fields.

ou have just bought a used track-type tractor to add to your production fleet. The initial capitalized value of the tractor is $110,000. The estimated service life remaining on the tractor is 10,000 hours and the anticipated operating conditions across the remainder of its life are normal. The salvage value of the tractor is $12,000. The tractor was purchased on July 1, 1997. a. What amount of depreciation will you claim for each calendar year between 2007 and 2010

Sagot :

Answer: $32,667

Explanation:

The truck's useful life is 3 years because it is 2007 to 2010.

Depreciation = (Cost - Salvage value) / Useful life

= (110,000 - 12,000) / 3

= $32,667 per year