Question: During the year, a farmer pays $ 1 , 8 5 0 prinicpal and $ 5 0 0 interest on a tractor loan. His annual

During the year, a farmer pays $1,850 prinicpal and $500 interest on a tractor loan. His annual depreciation is $2,000. His deductible operating expenses (fuel, oil, repairs, etc.) associated with operating the tractor totaled $500. His marginal tax rate is 25%. What is his after-tax cash cost of using the tractor for the year?

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