Unfortunately, it appears that the depreciation rate was not enough to keep up with economic realities.
Latest fourth-quarter results included a gain of $5.9 million after tax, or 11 cents a share, from a revision to depreciation rates.
Apply a steeper depreciation rate in the first few years of an asset's value.
Information about depreciation rates must be derived from a number of different sources.
What they should be doing is simplifying the tax code itself - get rid of 19 different depreciation rates.
In addition, depreciation rates for some equipment have been stretched to seven years or more, which also raises the expense of ownership.
The economic depreciation rate is based on observations of the average selling prices of assets at different ages.
It is strongly related to the actual depreciation rate of fixed capital.
Some will also come from an accelerated depreciation rate, enacted to encourage companies to buy machinery and other goods more often.
The resulting high depreciation rate of the product increases the value of the underlying human capital.
