Determine ownership depreciation cost per hour for a D9N Caterpillar dozer with the following assumptions: • Engine - 370 hp • Overall cost of Money -6% (i) • Useful life-5 years (n) • Hours used per year - 2200 • Initial Cost - $400,000 (P) • Cost of tires - $42,000 (for this formula you need to subtract the cost of the tires from the initial cost) Estimated Salvage Value - $40,000 (F) or [(S) for AAI formula] NOTE: Use the average of the Time Value Method and the Average Annual
Determine ownership depreciation cost per hour for a D9N Caterpillar dozer with the following assumptions: • Engine - 370 hp • Overall cost of Money -6% (i) • Useful life-5 years (n) • Hours used per year - 2200 • Initial Cost - $400,000 (P) • Cost of tires - $42,000 (for this formula you need to subtract the cost of the tires from the initial cost) Estimated Salvage Value - $40,000 (F) or [(S) for AAI formula] NOTE: Use the average of the Time Value Method and the Average Annual
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter9: Depreciation (deprec)
Section: Chapter Questions
Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...
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