Cost of Long-Term Asset and Depreciation Melissa Mertz purchased a used tractor
ID: 2577327 • Letter: C
Question
Cost of Long-Term Asset and Depreciation Melissa Mertz purchased a used tractor for $17,100. Before the tractor could be used, it required new tires, which cost $1,060, and an overhaul, which cost $1,400. Its first tank of fuel cost $71. The tractor is expected to last six years and have a residual value of $2,120 Determine the cost and depreciable.cost of the tractoir Cost: Depreciable cost Calculate the first year's depreciation under the straight-line method Round your answer to the nearest whole.Explanation / Answer
solution:
cost 17100 depreciable cost (17100-2120) 14980 First year depreciation under SLM 2,497 (14980/6)