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A tractor with a front-end loader and a backhoe costs $25,000 and is rented by the hour, day, or week. It is expected to depreciate

A tractor with a front-end loader and a backhoe costs $25,000 and is rented by the hour, day, or week. It is expected to depreciate to $2,200 when it has been rented out until the total rental income equals $74,000. Annual incomes for the tractor are expected to be $26,000, $20,000, $15,500 and $10,500 per year over the next 4 years. 9.B.3 a. What are the depreciation charges for each year, using the income forecast method? D1 = $

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D2 = $

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D3 = $

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D4 = $

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b. How much additional income is expected from the tractor? Additional income = $

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