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li Production Company as water production land whose original cost is recorded on the books of the Los Angeles k Salt Lake Railroad Gom-pany at $34*985*88; approximately 70$ was purchased in 1903. Ho land is held by the Water Utility. Thus, the average recorded cost of this valuable water bearing land is at the very low rate of $26.34 per acre. It is common knowledge that land values in Las Vegas have in­creased very substantially during the last few years, so that acre­age currently ranges in price from something less than $100 to well over $1000 per acre, depending upon the location of the land. In making provision for this item under the original-cost and present-day cost estimates, land has been priced out at the very nominal figure of $100 per acre. In using this unit cost figure, how­ever, it has not been applied to the total of 1230.74 but to 679.42 acres (lying west of the north-and-south center line of Sections 29 and 32, T. 20 S., R. 61 E,, MDB&M - see map). This results in a present day cost of $67*900 to which has been added $6,000 for the necessary easements and rights-of-way from the l$nd withdrawn from use, for the water transmission and electric lines to serve respect­ively the Water Utility and electric pumps of the Production Company. Improvements! An analysis of the "Investment** and original cost figures show that the former is low. The increase in original cost over the in­vestment cost in the year 1949 and its make-up is: Production Items Facilities Cost of replaced mains not capitalised $13,#5$ Excess of Original Cost over book entry AQxgij. >54,771 Water Utility P T , T O JgxZgl $93,480 The present-day cost over the original cost is an increase for the production facilities of 38.6$ and 33.6$ for the Water Utility.