Example of Collection Valuation
Value of the collection (item life estimated at 5 years)
Amounts shown in blue are annual expenditures for item
-Annual expenditures are depreciated annually by a rate of 20%
Half-year Convention (One-half of a full year's depreciation for first year regardless of when placed in service)
Collection
Acquisition Year 1999 2000 2001 2002 2003 2004 Value
Cost $100,000 $110,000 $125,000 $135,000 $150,000 $175,000
1999 Depreciation $10,000
1999 Year End Value $90,000
2000 Depreciation $20,000 $11,000
2000 Year End Value $70,000 $99,000
2001 Depreciation $20,000 $22,000 $12,500
2001 Year End Value $50,000 $77,000 $112,500
2002 Depreciation $20,000 $22,000 $25,000 $13,500
2002 Year End Value $30,000 $55,000 $87,500 $121,500
2003 Depreciation $20,000 $22,000 $25,000 $27,000 $15,000
2003 Year End Value $10,000 $33,000 $62,500 $94,500 $135,000 $335,000
2004 Depreciation $10,000 $22,000 $25,000 $27,000 $30,000 $17,500 $131,500
2004 Year End Value $0 $11,000 $37,500 $67,500 $105,000 $157,500 $378,500 *
2005 Depreciation $11,000 $25,000 $27,000 $30,000 $35,000
2005 Year End Value $0 $12,500 $40,500 $75,000 $122,500
2006 Depreciation $12,500 $27,000 $30,000 $35,000
2006 Year End Value $0 $13,500 $45,000 $87,500
2007 Depreciation $13,500 $30,000 $35,000
2007 Year End Value $0 $15,000 $52,500
2008 Depreciation $15,000 $35,000
2008 Year End Value $0 $17,500
2009 Depreciation $17,500
2009 Year End Value $0
* Reconciliation of 2004 Year End Value:
2003 Year End Value $335,000
2004 Additions $175,000
Less: 2004 Depreciation $131,500
2004 Year End Value $378,500