Section $13\mathrm{.}2$& $13\mathrm{.}3$ Equipment Costs

T or F

Equipment costs are of $2$ types: wear and tear $($depreciation$)$ and $O$&$M($operation and

maintenance$).$

Tires, fuel, brake pads, oil changes, batteries, etcetera are examples of depreciation.

Reporting equipment costs is similar to reporting labor costs; hours worked are

recorded.

Section $13\mathrm{.}4$ Equipment Depreciation

T or F

The Accelerated Cost Recovery System $($ACRS$)$ is an IRS accepted method of claiming

depreciation of equipment.

In accordance with the ACRS, the $3$ major factors affecting the calculation of

depreciation are Initial Cost $($Capital Cost$),$ Service Life $($years$,$ miles, hours, etc.$),$ and Salvage

Value.

Section $13\mathrm{.}5$ Equipment Taxes

T or F

In accordance with the ACRS, the $3$ major factors affecting the calculation of

depreciation are Initial Cost $($Capital Cost$),$ Service Life $($years$,$ miles, hours, etc.$),$ and Salvage