A tractor with a front-end loader and a backhoe costs \($20,000\) and is rented by the hour, day, or week. It is expected to depreciate to \($2,000\) when it has been rented out until the total rental income equals \($72,000.\) Annual incomes for the tractor are expected to be \($24,000,\) \($18,000,\) \($16,000,\) and \($10,000\) per year over the next 4 years. (9.B.3)

a. What are the depreciation charges for each year, using the income forecast method?

b. How much additional income is expected from the tractor?

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D, (PF)(R,/R) (9.B.3)