How is depreciation calculated when the salable value of machinery is not determined?
Ontario, Canada
The following excerpt is from In Re Robertson, 1952 CanLII 15 (ON CA):
In Re Grabtree; Thomas v. Crabtree (1912), 106 L.T. 49, it was held that a sum should be written off out of the earnings of a business before the net profits could be ascertained. Buckley L.J. put the matter this way: “The profits of this business are not ascertained until a sufficient sum has been deducted to meet the depreciation of the machinery. “One of the witnesses in his affidavit referred to the ‘salable value’ of this machinery. That is not the right standard. Here it is the value of the machinery for the purpose of this business, not the salable value.”
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
If a property has been valued at a fair value after the date of a valuation date, can the value of the property change from its original valuation date to its current value? (Ontario, Canada)
Is a credit card agreement providing for interest at 2.4% per month calculated on the previous month’s balance calculated on a monthly basis calculated on an annual rate of 28.8%? (Ontario, Canada)
What is the test for a party to determine the value of a property that they own on the Valuation Date Matrimonial Home? (Ontario, Canada)
What is the test for determining the determination of a plaintiff's costs in a personal injury case? (Ontario, Canada)
How has the equalization of a jointly owned cottage been calculated in the calculation of matrimonial property? (Ontario, Canada)
What steps must the Assessment Review Board take to determine the value of a property for purposes of property tax? (Ontario, Canada)
What is the test for determining whether a defendant’s jurisdiction has to be determined by the Court of Appeal? (Ontario, Canada)
What is the complexity of the calculation of the value of the unpaid services? (Ontario, Canada)
Is a wife entitled to a pro-rated portion of her income tax refund for the purposes of determining the value of her expenses? (Ontario, Canada)
What is the test for determining that a defect in the value of a home is unique to the property and known on the date of valuation? (Ontario, Canada)
