answer this question quick. A diesel-powered tractor with a cost of $396,560 and estimated residual value of $4,100 is expected to have a useful operating life of 93,000 hours. During November, the tractor was operated 300 hours. Determine the depreciation for the month. Carry out any division to two decimal places. $fill in the blank 1

answer this question quick. A diesel-powered tractor with a cost of $396,560 and estimated residual value of $4,100 is expected to have a useful operating life of 93,000 hours. During November, the tractor was operated 300 hours. Determine the depreciation for the month. Carry out any division to two decimal places. $fill in the blank 1

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Description: answer this question quick.A diesel-powered tractor with a cost of $396,560 and estimated residual value of $4,100 isexpected to have a useful operating life of 93,000 hours. During November, the tractor wasoperated 300 hours.Determine the depreciat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Step 2: Depreciation per Hour is calculated as follows -

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Step 3: Depreciation Expense for 300 Hours of Worked Truck -

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