Depreciation on mature trees


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27 Mar A tree cannot be depreciated like mechanical plant, because as a living Trunk Area Formula (ATAF) in consideration of large trees (>mm.

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Depreciation on mature trees

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Depreciation on mature trees
Depreciation on mature trees
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study the depreciation of all depreciable assets, and when .. the fruit and nut trees reach the bearing stage, they continue to mature for a number of years.

Description:Fruit and nut growers have few options in the way they expense planting and preparatory costs. Generally, the UNICAP rules require farmers to capitalize the preproductive period costs if the plants have a preproductive period of more than 2 years. Plants are treated as placed in service when they produce a crop that has a value in excess of the cost of harvesting it. For tax purposes however, the determination that a plant has a preproductive period of more than two years is based on the national average preproductive period for that plant. Therefore, whether a plant is subject to capitalization of preproductive expenses does not vary from one grower to another or from one block of plants to another.

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Views: 7297 Date: 2018-10-28 Favorited: 58 favorites

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