Determine the probable average cost per hour over the life of the equipment for owning and operating an off-highway truck under the conditions given below. Use the straight-line method of depreciation. Operating conditions Delivered price average $184,000 $15,000 6 years 2,000 hr/yr $34,000 $2.00/gal 440 hp Cost of a set of tires Expected life of the truck Hours operated Estimated salvage value Fuel cost Rated power Rate for interest, tax insurance, and storage 20%

Determine the probable average cost per hour over the life of the equipment for owning and operating an off-highway truck under the conditions given below. Use the straight-line method of depreciation. Operating conditions Delivered price average $184,000 $15,000 6 years 2,000 hr/yr $34,000 $2.00/gal 440 hp Cost of a set of tires Expected life of the truck Hours operated Estimated salvage value Fuel cost Rated power Rate for interest, tax insurance, and storage 20%

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

3. Determine the probable average cost per hour over the life of the equipment for owning and
operating an off-highway truck under the conditions given below. Use the straight-line method of
depreciation.
Operating conditions
Delivered price
average
$184,000
$15,000
6 years
2,000 hr/yr
$34,000
$2.00/gal
440 hp
Cost of a set of tires
Expected life of the truck
Hours operated
Estimated salvage value
Fuel cost
Rated power
Rate for interest, tax
insurance, and storage
20%

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