For example, if the depreciated cost
of the above-grade area was $84.
Where depreciated cost
is used the profit and loss account will instead bear an annual depreciation charge.
The price offered by the most promising purchaser, National Convenience Stores, would not yield this amount unless Colonial's tax obligations were based on depreciated cost
instead of fair market value.
Replacement value insurance will tack on as much as 15% to your premium, but it's worth it: Cash value pays back only the depreciated cost
of destroyed items--which won't be enough to replace them.
Surber pointed out that, "All of the real estate is held at a depreciated cost
basis which means that if you added in the equity based upon the market value of the properties the number would be substantially higher.
Others have suggested that the appraiser prepare another cost approach for the residential improvements of each sale and then extract the net difference in the depreciated cost
The money is there to pay us for the depreciated cost
of the building if the deal doesn't go through.
The industry audit guide Audits of Stock Lite Insurance Companies supported carrying foreclosed assets at the lower of depreciated cost
or market value, net of any encumbrances.
These firms used a variety of appraisal methods, including the depreciated cost
method, the sales method and the income method, in reaching their conclusions.
Bar B represents the depreciated reproduction cost after deducting the three components in the four-step method, namely, the physically depreciated cost
of the existing defect item, the EXCC, and the controversial component-the replacement cost new (or used) of the substitute item.
This four-step method always fails to reflect market realities since, while appropriately deducting a depreciated cost
for the existing item, it recognizes only a zero value for the replacement item which has at least the same utility as the existing item and may produce even more cash flow.
The property's current book value is $909,500 which is its depreciated cost
basis plus improvements.