Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. a backhoe/loader with a diesel engine of 240 hp

1. A backhoe/loader with a Diesel engine of 240 hp was purchased for $232,480. It...

70.2K

Verified Solution

Question

Accounting

1. A backhoe/loader with a Diesel engine of 240 hp was purchased for $232,480. It isused 1,200 hours per year and has a useful life of 8 years. It has a crankcase with acapacity of 6 gallons. The time between oil changes is 120 hours. Assume anoperating factor of 45%. Diesel fuel and lubricating oil costs are $2.73 per gallonand $8.00 per gallon, respectively.a) Determine the probable cost per hour for owning and operating this backhoeusing the standard approach (straight-line depreciation, no salvage value)b) Determine the probable cost per hour for owning and operating this backhoeusing the PSSS approach. Assume the estimated salvage value after 8 years is$18,000, the annual cost of maintenance and repairs equals 75% of annualdepreciation, tax-insurance-tax cost is 10% of average value, no major repairsare anticipated, the company is tax-exempt, and i =6%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Which of the following IS NOT a form of the Pythagorean Identity? A. sinx +...

Calculus
Q

On the first day after arriving in Australia for Christmas vacation, a University of Niagara student...

Medical Sciences
Q

A viscous incompressible fluid is between two parallel plates (that are along the x-z plane), one...

Physics
Q

The U.S. Healthcare Delivery Model differs from international care delivery models. Take a stand on a Healthcare...

General Management
Q

A 2 5 m long straight wire having mass of 500 g is suspended in...

Physics
Q

3 A Gallup survey of 2322 adults at least 18 years old in the U...

Statistics
Q

Journalize the entries to record the following...

Accounting
Q

A lessees advance payments on an operating lease can be considered as ...

Accounting
Q

The following income statement and additional year-end information is provided. Accounta receivable Inventory \$ 22,250...

Accounting
Q

Members of the board of directors of Security One have received the following operating income...

Accounting
Q

Use glmnet() to fit LASSO models for a collection of values (as automatically selected...

Accounting
Q

In 2021, Miranda records net earnings from self-employment of $158,500. She has no other income....

Accounting