Answer:
$214,000 – $30,000
50,000 hours
= $3.68 depreciation per hour
175 hours at $3.68 = $644 depreciation for January
EX 10-10 Depreciation by units-of-output method
A diesel-powered tractor with a cost of $214,000 and estimated residual value of $30,000 is expected to have a useful operating life of 50,000 hours. During January, the tractor was operated 175 hours. Determine the depreciation for the month.
Answer:
$214,000 – $30,000
50,000 hours
= $3.68 depreciation per hour
175 hours at $3.68 = $644 depreciation for January
Answer:
$214,000 – $30,000
50,000 hours
= $3.68 depreciation per hour
175 hours at $3.68 = $644 depreciation for January