Web Application Chapter 13 page 552

The members of the Economic Committee of Hood River, Oregon are delighted to know that the economic grant that the city was awarded included $35,000 to purchase a Caterpillar Skidder. The Skidder is a forest product machine. The committee elected to purchase the Skidder 525 for its stylish exterior, its powerful hydraulics and drive train.

Point your browser to www.caterpillar.com and select Equipment, then Forest Products, and then answer the following questions.

1. According to the description of the Skidder 525, what is the wheelbase in feet? What is the operating weight in pounds?

2. Assume that the Skidder sells for $35,000 and has an estimated life of five years with a salvage value of $7000. Using the sum-of-the-years'-digits method, prepare a depreciation schedule. Use the method discussed in Section 13.3 (pages 551-560) in your textbook.

Show your work and include a date in your answer.

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