Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VII. The purpose of the appraisal

Collection:: Economics Books

CHAPTER VII THE PURPOSE OF THE APPRAISAL General Statement Various Purposes of Appraisal. — The owner of an operating property is interested more in knowing what it has cost him than he is in the value of the property, until the time comes when a transfer of ownership is to be made or the business is to be capitalized. Generally, however, when any enterprise of considerable magnitude is involved the owner should, at all times, have a clear conception of its value. This can only be obtained by making the analysis of the investment and of oper- ating expenses in relation to revenue, and involves much more than a study of financial records. The condition and adapta- bility of a plant to the uses to which it is being put are involved and must be considered by the appraiser. Valuation, therefore, may be required: a. As a basis for a purchase and sale transaction. b. When the property is to be pledged as a security for a loan or as the basis for a bond issue. ¢. When the rates of a public utility are to be fixed or regu- lated, because the earnings resulting from the rates should be adequate to bring a suitable return on the investment and be- cause the charge for the service should be reasonable. d. As a basis for taxation. The taxation value bears or is intended to bear some definite relation to market value. This is not only true in the case of ordinary taxation, for the purpose of carrying on government, but also in the innumerable cases in which it becomes neces- sary to apportion to the property which is benefitted, the cost of some improvement in proportion to the benefits which it confers. 123

Access restriction

Copyright

fullscreen: Valuation, depreciation and the rate base

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation