a tractor at Given that a farm entrepreneur purchases a price of K150,000,000 with an expected life of 10 years using own money, depreciation rate of 10% by straight line method, interest rate in bank is 20%, road taxes are K200,000 per year, insurance is 7.5% of value, repairs are 0.5% of tractor cost, fuel and lubrication will be K240,000 per day for 10 days in a month, and labour is K200,000 per day for 10 days in a month, calculate the ownership costs, operating costs and total tractors costs during the period of service on the farm.

a tractor at Given that a farm entrepreneur purchases a price of K150,000,000 with an expected life of 10 years using own money, depreciation rate of 10% by straight line method, interest rate in bank is 20%, road taxes are K200,000 per year, insurance is 7.5% of value, repairs are 0.5% of tractor cost, fuel and lubrication will be K240,000 per day for 10 days in a month, and labour is K200,000 per day for 10 days in a month, calculate the ownership costs, operating costs and total tractors costs during the period of service on the farm.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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