Miscellaneous Items - Stereo Tapes

Item Age (Years)
Replacement Cost
$
.00
 
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, stereo, tapes, cds, 8-track, records, music, bands
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)