A delivered price (including attachments) of a crawler dozer tractor is $186,900 with a residual value of 40%. The useful life of the tractor is 8,900 hours. a. What is total amount of depreciation allowed?

b. What is the amount of depreciation per hour?

c. If the tractor is operated five days a week for an average of 7.25 hours a day, what would be the depreciation for the first year?

d. If the hours of operation were the same each year, what would be the total number of years of useful life for the tractor?

If corporate headquarters for UPS in Atlanta is considering adding to its 96,000 + fleet of delivery vans, what is year 5s depreciation expense using MACRS if one van costs $78,500?

What is the depreciation expense?