Business amortization

Depreciation and amortization are means of recovering your investment in property that has a useful life of more than a year and is used in your trade or business or held for the production of income. 1... 

Proliferation of a large number of mechanized systems in narrow subject fields. The searching media tend to be centered in accounting-type punched-card equipment, or standard digital computers which were obtained by the organizations chiefiy for business applications, and searching inefficiencies can be tolerated because of complete amortization of equipment cost on nonlibrary applications. 

In Other Value Added (Table 4.4b) is property-type income, which is a composite of several factors, including proprietor s income, rental income of persons, corporate profits, inventory valuation adjustment, net interest, business transfer payments, surplus of government enterprises less subsidies, and capital consumption allowances (depreciation, depletion, and amortization). As expected, property-type income is highest for sector 7 IB, real estate. The depreciation part of property-type income accounts for the high values of some of the CPI sectors (e.g., 27 and 29). The depletion part of property-type income accounts for the moderately high values of sector 8, crude petroleum and natural gas. 

Many hydrotreaters are stay-in-business investments, so it s diffieult to quantify their upgrade value, which is the value of products minus costs -labor, materials (liquid feed, hydrogen, catalysts and chemicals), utilities, maintenance, and investment amortization. In some plants, the refinery planning LP assigns equal value to treated and imtreated naphtha, and even to treated and untreated distillates. This reflects the underlying assumption that the increase in value across a hydrotreater is equal to the cost of running the unit, i.e., the upgrade value is zero. In other LPs, the NHT that pretreats catalytic reformer feed is lumped in with the reformer. Certainly, if a key naphtha or distillate hydrotreater shuts down, ihe refinery may have to run at reduced rate, but that can be said of most units. 

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