valuation Example

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					                                       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

				
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posted:12/30/2011
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