Image
Copyright & Fair-use Agreement
UNLV Special Collections provides copies of materials to facilitate private study, scholarship, or research. Material not in the public domain may be used according to fair use of copyrighted materials as defined by copyright law. Please cite us.
Please note that UNLV may not own the copyright to these materials and cannot provide permission to publish or distribute materials when UNLV is not the copyright holder. The user is solely responsible for determining the copyright status of materials and obtaining permission to use material from the copyright holder and for determining whether any permissions relating to any other rights are necessary for the intended use, and for obtaining all required permissions beyond that allowed by fair use.
Read more about our reproduction and use policy.
I agree.Information
Digital ID
Permalink
Details
More Info
Rights
Digital Provenance
Publisher
Transcription
% - 3 - Depreciation on water pipe lines was allowed by the Bureau of Internal Revenue on a straight line basis on a 50 year service life to and including the year 1941. Commencing with the year 1942, the remaining service lives or depreciation rates for the various sizes of pipe were agreed to with the Engineering Section of the B.I.R., as shown in column 8 of Schedule furnished you with my letter of April 14, 1950. The depreciation allowed by the B.I.R. to December 31, 1941 and apportioned to the various sizes of pipe, was reported in column 5 of revised Schedule BJB furnished to the B.I.R. in 1947 for revised income tax purposes for the year 1942. Similar revised SchedulesMJU were subsequently furnished the B.I.R. for revised income tax purposes for the years 1943 to 1946 inclusive. Beginning with the year 1947, such reporting has been made currently. The apportionment on Schedule BJB of the depreciation to the various sizes of pipe, which was allowed for income tax purposes, was made as followss 1. To December 3 1 , 1941, the B.I.R. rate was 2$, based on a 5© year life. Depreciation was therefore computed at the rate of 2% per annum from the dates of installation of the various sizes of pipe as shown on Schedule BJB to the end of 1941. 2. The remainder of the depreciation allowed by the B.I.R. over and above that determined in item 1 above, was apportioned to the various sizes of pipe in place on the basis of relative eost. 3. For those pipe lines replaced with larger size pipe since 1941, the depreciation so apportioned to the size of pipe replaced (as per items 1 and 2 above) was assigned to the larger sizes of pipe installed as reported on Schedule BJn. The B.I.R. has not objected to this apportionment thus far. Effective with the year 1947, depreciation has been accrued in the accounts of the L.V.L.& W.Co. on the same basis as it is recorded on Schedule BHB for income tax purposes. However, it was decided that the difference of f6,977.18 accrued on the books in excess of the amount allowed by the B.I.R. on Schedule BJB would not be adjusted. Detail of the charges made to the retirement reserve since it was established is shown belows