Miscellaneous Items
Stereo Tapes
Notes: Two factors are involved in depreciation of stereo tapes Obsolescence is the greatest factor in value reduction as music passes its popularity peak Dealers advise that a stereo tape reduces 50 % in value immediately after it is purchased and the seal is broken the other factor is deterioration resulting from temperature changes & stretching of the tape after a reasonable playing period If loss occurs within first three months after purchase date, use 75 % of replacement cost Fourth month & each month thereafter up to 14 months, subtract an additional 5 % per month eg use 70 % for fourth month, 65 % for fifth monthuse 20 % for 14th month & thereafter
Keywords: stereo tapes, cassette tapes, audio cassettes, vintage music, analog recordings
DEPRECIATION FORMULA
ACV = RCV - (DPR * RCV * AGE)
EQUATION VARIABLES
ACV = Actual Cash Value (Depreciated Value)
AGE = Age of Item (Years)
RCV = Replacement Cash Value (Cost to Purchase Now)
DPR = Depreciation Rate (% per Year)
DOWNLOAD THE CLAIMS PAGES DEPRECIATION GUIDE
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The Depreciation Calculator should be used as a general guide only; there are many variables which can affect an item's life expectancy that should be taken into consideration when determining actual cash value. Some items may devalue more rapidly due to consumer preferences or technological advancements.
For residential household and personal items, lifespan will vary depending on the quality of materials and workmanship, frequency of use or misuse, storage conditions and care. Life expectancy of building components will vary depending on a range of environmental conditions, quality of materials, quality of installation, design, use and maintenance.
An item that is still in use and functional for its intended purpose should not be depreciated beyond 90%.
The information provided in this tool was obtained and averaged from a variety of sources including but not limited to: manufacturers, repairers, builders and home inspector associations, and insurers.
