Depreciation, accounts under the ! Depreciation account, Wisconsin Rail-
various methods, 175. road Commission discusses -fund
accrued, definition, 2o. and -reserve, go.
amortization, depreciation and re- (see Lessening of Worth).
placements, 84, 86. Depreciation fund, California law re-
amortization not to be confounded strictions, 168.
with, 11, 86. discussed by Wisconsin Railroad
annual, definition, 23. Commission, go.
assumptions for purpose of discus- Detail of the appraisal, required extent
sion, 85. of, 40.
complex plants, principles applied to, Development of business, cost of, 26.
go. Discarded property, Wisconsin law on
current, must be covered by earnings, (see Unused property), 84.
34. Donated extensions to water-works, 12.
definition, 23, 84.
Equal Annual Payment Methods, 165. -
error in ordinary method of compu- +
tation, 456. Early losses, 9, 32, 64.
estimates of, are approximations, 104. Earnings, affected by ability to pay,
failure to make allowance for, 159. 35
formula for estimating replacement, application to replacements and
10%. amortization, 95.
hypothetical case in illustration, 8s. deficiency to be avoided, 42.
Interstate Commerce Commission, deficient in early years, 153.
rules for determining, 192. determination of, present and pros-
not a withdrawal of capital, 4. pective, 125.
Pocatello Water Co. case, not de- franchise value determined by, 10.
ducted, 137. must cover current depreciation,
private industrial establishments have 34.
problems, 4. net, as an element of value, 150.
rate-base, with and without, 129. net, and intangible values, 11.
remaining value under law of proba- net, should exceed those of ordinary
bilities, 117. investment, 36.
restrictions on, under California law, owner requires that hazards be cov-
168. ered, 32.
service value not reduced by, 33. procedure in estimating must be
Sinking Fund Method, 164, 167. continuous, 36.
Sinking Fund Method and Equal relation to rate-base and volume of
Annual Payment Methods com- business, 150, 161.
pared, 169. required, procedure for their com-
Straight Line Method, 101, 165. putation, 34.
Table 33, Amortization and Deprecia- should create value in excess of in-
tion, 450. vestment, 35.
Table 33, explanation, 453. Supreme Court of Maine, 17, 154.
treatment of, with appreciation, 73. value affected by, 10, 70, 150.
Unlimited Life Method, 166. water-right value determined by,
Wisconsin Railroad Commission, 159. - an,
490 INDE
:
