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28 Sep 2019
A tractor acquired at a cost of $275,000 has an estimatedresidual value of $39,000, an estimated useful life of 40,000hours, and was operated 2,660 hours during the first year.Determine (a) the total amount to be depreciated over the life ofthe asset,
(b) the amount of depreciation for the year,
c) the journal entry to record the yearâs depreciation,
(d) the book value of the asset at the end of the firstyear,
(e) explain why units of output may be preferred overstraight line as a method of depreciating the tractor
A tractor acquired at a cost of $275,000 has an estimatedresidual value of $39,000, an estimated useful life of 40,000hours, and was operated 2,660 hours during the first year.Determine (a) the total amount to be depreciated over the life ofthe asset,
(b) the amount of depreciation for the year,
c) the journal entry to record the yearâs depreciation,
(d) the book value of the asset at the end of the firstyear,
(e) explain why units of output may be preferred overstraight line as a method of depreciating the tractor
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Keith LeannonLv2
28 Sep 2019