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# 18) Determine the depreciation cost (\$-equipment work hour)- The equip.docx

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# 18) Determine the depreciation cost (\$-equipment work hour)- The equip.docx

18) Determine the depreciation cost (\$/equipment work hour). The equipment initial cost is \$67,500 and an anticipated salvage value of the equipment is \$2,000 and the useful life of the equipment is 6,000 working hours.
Depreciation cost per year = (original cost - salvage value)/useful life
a) 10.92
b) 11.34
c) 12.56
d) 13.05
Solution
Depreciation cost per year = (original cost - salvage value)/useful life
original cost = \$67,500
salvage value= \$2,000
useful life = 6,000 working hours
depreciation cost (\$/equipment work hour) = (67500-2000)/6000 = \$10.92
hance option a) is correct
.

18) Determine the depreciation cost (\$/equipment work hour). The equipment initial cost is \$67,500 and an anticipated salvage value of the equipment is \$2,000 and the useful life of the equipment is 6,000 working hours.
Depreciation cost per year = (original cost - salvage value)/useful life
a) 10.92
b) 11.34
c) 12.56
d) 13.05
Solution
Depreciation cost per year = (original cost - salvage value)/useful life
original cost = \$67,500
salvage value= \$2,000
useful life = 6,000 working hours
depreciation cost (\$/equipment work hour) = (67500-2000)/6000 = \$10.92
hance option a) is correct
.

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### 18) Determine the depreciation cost (\$-equipment work hour)- The equip.docx

1. 1. 18) Determine the depreciation cost (\$/equipment work hour). The equipment initial cost is \$67,500 and an anticipated salvage value of the equipment is \$2,000 and the useful life of the equipment is 6,000 working hours. Depreciation cost per year = (original cost - salvage value)/useful life a) 10.92 b) 11.34 c) 12.56 d) 13.05 Solution Depreciation cost per year = (original cost - salvage value)/useful life original cost = \$67,500 salvage value= \$2,000 useful life = 6,000 working hours depreciation cost (\$/equipment work hour) = (67500-2000)/6000 = \$10.92 hance option a) is correct