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Chapter 10 Homework Show Me How Calculator Depreciation by Unts of Output Method A diesel powered tractor with a cost of $180
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Answer #1

Correct Answer is $702

Depreciaiton as per Unit of Activity
Depreciation= (Cost- Salvage Value)/ Useful Operating Life
=(180000-18000)/36000 = 4.5 Hour
Usage in February= 156 Hour
Depreciation in February= 156 HourX $4.5
=$702
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