You are thinking of purchasing the below tractor for use on your farm. You consult local dealers
Question:
You are thinking of purchasing the below tractor for use on your farm. You consult local dealers and estimate an equivalent tractor purchased new would cost $230,000.
John Deere 6155R
Year: 2020 –
3 years old Condition:
Used Hours: 274
Price: $189,900
Description: 155 HP, MFWD w/ triple link suspension, 480/80R46 dual rear tires, 380/85R34 front tires, AutoPower IVT transmission, rear PTO (540/1000), premium cab w/ suspension & command arm and leather comfort package, 4 rear electrohydraulic SCV, Cat 3/3N 3-point hitch.
Question
Is the $189,900 asking price a fair price given the age and hours of operation the tractor has accumulated with the previous owner(s)? Justify your answer with an actual calculation of the estimated remaining value as of today for this 3-year-old tractor
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill