FARM MOTOR TRUCK OPERATION. 
19 
DEPRECIATION. 
The average first cost (including extra equipment purchased) of 
the trucks of different sizes divided by the average life of the re- 
spective sizes gives the annual depreciation costs. The annual 
charges for depreciation (also for interest, registration and license 
fees, and repairs) divided by the average annual mileage gives t he- 
charges per mile of travel for the items mentioned. 
Below are given the annual depreciation charges based on the 
estimated life of the trucks, and the depreciation charge per mile 
of travel based on the average 
annual mileage (see p. 17) for 
the trucks of various sizes: 
Depre- 
Annual 
ciation 
deprecia- 
charge 
tion 
per mile 
charges. 
of travel 
(cents) . 
i-ton trucks.. 
$72 
160 
117 
2. 1 
2-ton trucks. . 
3.8 
1-ton trucks. ... 
4.3 
1 J and 1^-ton trucks . . . 
230 
7.7 
2-ton trucks 
247 
6.9 
For the J and j-ton sizes the 
depreciation charges as shown 
above are greater than the com- 
bined cost of fuel and oil used 
by them, while for the 1-ton 
and larger sizes the deprecia- 
tion charges are greater than 
for fuel, oil, and tires. (See 
%. no 
Fig. 11. 
9 License 
P 
% Interest 
i_l Repairs 
Tires 
Gaso/ine 
and Oil 
Depreciation 
-Cost per mile of operating motoi 
trucks of different sizes. 
INTEREST. 
Interest has been computed at 8 per cent on the average invest- 
ment. The generally accepted method for determining the average 
investment in equipment where a part of the first cost is charged 
off each year has been followed. That is, the first cost has been 
multiplied by the years of service plus one, and this result has been 
divided by the years of service multiplied by two. Interest calcu- 
lated by this formula is slightly higher than when computed on 
half the first cost of the equipment. On the basis given the average 
interest charges for the several sizes of trucks are as follows : 
Average 
annual 
interest 
charges. 
Average 
interest 
charge 
per mile 
of 
travel 
(cents). 
J-ton trucks 
f-ton trucks 
1-ton trucks 
H and H-tcm trucks 
2-ton trucks 
0.8 
1.4 
1.5 
3.1 
3.1 
