depreciation, agriculture economics department, farm management
Cooperative Extension Service, South Dakota State College of Agriculture and Mechanic Arts
At the beginning of the year you filled out the first two columns of the depreciation accounts which called for the “year bought” and the “original cost.” In column 3 enter the cost of new improvements made or of new machinery bought during the year. Special pages are provided in the account book for Machinery Expense and for Repairs on Permanent Improvements. The totals of these pages are carried direct to the Farm Business Summary at the end of the year. However, extensive repairs, like re-shingling a roof or re-painting a barn, may be considered as new improvements and entered in column 3 instead of being charged as repairs. If this is done, then the following year depreciation is figured on the original cost plus the cost of the improvements
McCollough, H. D., "How to Figure Depreciation" (1923). SDSU Extension Circulars. 169.