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LEVELS OF TRADE. VAGUE APPLICATIONS
<br />INSURANCE PLACEMENT COST NOW (CALLED
<br />REPLACEMENT PRICE FOR INSURANCE
<br />POLICIES BUT ACTUALLY IS REPRODUCTION
<br />COST NEW, IE:, SAME PRODUCTIVE UTILITY);
<br />OR ACTUAL CASA VALUE WHICH IS
<br />ESSENTIALLY PHYSICALLY DEPRECIATED
<br />REPLACEMENT COST (CANBE OF AS
<br />BEING THE SAME FUNCTIONAL UTILITY
<br />WITHOUT BETTERMENTS AND CONSIDERING
<br />PHYSICAL DETERIORATION)
<br />PURCHASE PRICE ALLOCATION, FAIR VALUE
<br />UNDER ASC 805, IFRS 3 (ASSUMING ADEQUATE
<br />ECONOMIC SUPPORT)
<br />PURCHASE PRICE ALLOCATION, IRS, FAIR
<br />MARKET VALUE IN CONTINUED USE:
<br />(ASSUMING ADEQUATE ECONOMIC SUPPORT)
<br />MARKET VALUE, INSTALLED, MAY BE USED
<br />FOR FAIR VALUE REPORTING AS AN
<br />ALTERNATIVE TO ABOVE NOTED PURCHASE
<br />PRICE ALLOCATION FAIR VALUE OF $21,546
<br />MARKET VALUE, REMOVAL FOR ADJUSTED
<br />BALANCE SHEET APPROACH, FINANCING.
<br />BUSINESS DISSOLUTIONS. ETC.
<br />AD VALOREM TAXATION. MARKET VALUE
<br />(CERTAIN JURISDICTIONS CONSIDERING"IN
<br />USE" INSTALLED VALUE, TREND UP
<br />HISTORICAL COST AND DEPRECIATE ON
<br />STRAIGHT LINE BASIS
<br />NOTE: MOST TAX ASSESSOR'S USE THE MVS
<br />AGE/LIFE DEPRECIATION CURVE. IF SO
<br />RATTIER THAN THERE, BEING 30% FOR 3 YEARS
<br />OF STRAIGHT LINE DEPRECIATION IT WOULD
<br />BE 24% WITH THE VALUE BEING HIGHER AT
<br />AD VALOREM TAXATION, MARKET' VALUE AS
<br />USED PLUS DEPRECIATED INSTALLATION,
<br />NOTE THIS MAY BE THE TAXPAYERS
<br />APPROACH
<br />OLV, FOR FINANCING PURPOSES
<br />OLV. FOR FINANCIAL REPORTING (BARGAIN
<br />PURCHASE)
<br />FLV, FOR FINANCING PURPOSES
<br />$28,350 RP,
<br />CALCULATED AS $211,500 X I+10%)
<br />$21,346
<br />FOR INFLATION X (1-10%) FOR
<br />ACV
<br />EXCESS CAPITAL COST X ()-S'A) FOR
<br />FUNCTIONAL.OBSOLESC:ENCE TO
<br />DERIVE CURRENT REPLACEMENT
<br />COST OF $28,350, OR FOR ACTUAL
<br />CASH VALUE THE REPLACEMENT
<br />COST NEW OF 528,)50 LESS 24% FOR
<br />3 YEARS OF PHYSICAL
<br />DETERIORATIN, NETMG TO $21,546
<br />$21,546-
<br />SAME AS JUST ABOVE FOR ACTUAL
<br />CASH VALUE COVERAGE (NOTE,
<br />REDUCE FOR ECONOMIC
<br />OBSOLESCENCE IF NOT ADEQUATE
<br />ECONOMIC SUPPORT)
<br />$21.$46,
<br />AGAIN. SAME AS JUST ABOVE
<br />(NOTE, ALSO REDUCE 1F NOT
<br />ADEQUATE ECONOMIC SUPPORT
<br />516,630
<br />CALCULATED AS 512,000 USED
<br />MARKET VALUE+ 39%
<br />INSTALLATION FACTOR
<br />$12,000 ESTIMATE F.O.B. COST BASED UPON
<br />DEALER DISCUSSIONS.
<br />$20,790 CALCULATED AS $27,000 NET OF
<br />INDIRECTCOSTS X(1+10%)FOR
<br />INFLATION X (1.30%) FOR 3 YEARS
<br />OF STRAIGHT LINE DEPRECIATION,
<br />OR ACCORDING TO TAX TABLES
<br />(NOTE, LEVEL OF ECONOMIC
<br />SUPPORT NOT CONSIDERED, ALSO
<br />$1,900 OF INTANGIBLE ASSETS
<br />INDIRECT -COSTS IN VALUE NOT
<br />INCLUDED
<br />$16,680 CALCULATED AS $12,000 USED
<br />MARKET VALUE + 30% OF $11,000
<br />FOR DEPRECIATED INSTALLATION
<br />$9,600 CALCULATED AS 20% LESS TI IAN
<br />$12,000 FMV
<br />$8,640 NET OF SEU.ING CQSTS OF I O%
<br />$7,200 .CALCULATED AS 605E OF S12,000
<br />-116 -
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