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During the year, a farmer pays $ 1 , 8 0 0 principal and $ 5 0 0 interst on a tractor loan. His annual

During the year, a farmer pays $1,800 principal and $500 interst on a tractor loan. His annual depreciation is $1,500. His deductible operating expenses (fuel, oil, repairs, etc.) associated with operating the tractor totaled $500. His marginal tax rate is 30%. What is his after-tax cash cost of using the tractor for the year?

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