1) Depreciation by Units-of-activity Method A diesel-powered tractor with a cost of $195,000 and estimated residual value of $2,600 is expected to have a useful operating life of 65,000 hours. During April, the tractor was operated 100 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places. $ 2.96 Feedback Units-of-production allocates the cost of the asset equally over the units produced. The depreciation rate stays constant.