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 XVII. Supplement to valuation, depreciation and the rate-base

Collection:: Economics Books

436 VALUATION, DEPRECIATION AND THE RATE-BASE Eight years in a twelve-year probable life table is fairly com- parable with 6.67 years in a ten-year table and with 10 years in a fifteen-year table. Remaining value (at 6 per cent): For age 6.67 years from the ten-year table........... .... . $58.80 For age 10 years from the fifteen-year table................ _62.30 Difference... LLL coll LLL ad tc S12 SO or approximately 58.80 + 2 X 3.50 = $60.20. It remains to be noted that when remaining value is to be determined age may be entirely disregarded when expectancy can be ascertained by an inspection of the article in question. The condition of the article and all other circumstances affecting its serviceability being taken into consideration its probable remaining term of service or its expectancy is estimated. In this case it will be more convenient to use Table 33 than Table 31. Select the subdivision of Table 33, corresponding with the probable life new of the article, and use only the headings of the columns at the bottom of the page. For the expectancy noted in the right-hand column, the remaining value and the accrued depreciation will be found in their respective columns. Inter- polation may be resorted to for fractional years if this refinement be thought desirable. Because expectancy in the case of individualized articles which have been long in use can best be determined by inspection and by a consideration of local circumstances affecting continued serviceability, it has been thought sufficient to note values in the long-term subdivisions of Table 31 and for articles long in service only for every fifth or every tenth year. To find the current depreciation of any single article in any year by the use of Table 31 subtract from its remaining value at the beginning of that year the remaining value at the begin- ning of the following year. Example. — What is the current depreciation in the sixth year, at 6 per cent interest, of an article whose probable life is 15 years? Remaining value at the beginning of the sixth year........... $76.90 Remaining value at the beginning of the seventh year......... 2.60 Depreciation in the sixth year........ $4.30

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