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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 $2,000 when it has been rented out until the total rental income equals $73,000. Annual incomes for the tractor are expected to be $24,000, $20,000, $18,000 and $10,000 per year over the next 4 years. 9.3.3 a. What are the depreciation charges for each year, using the income forecast method? D1 = $ D2 = $ D3 = $ D4 = $ b. How much additional income is expected from the tractor? Additional income = $ Round your answers to a whole dollar. Tolerance is +/- 10
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