Module 8

Question 1

Depreciation

Answer 1

Value of capital lost over time

Question 2

Deprecation for tax purposes

Answer 2

Cannot report large capital expenditures at once

Considered operation expense

Question 3

Depreciation value of asset

Answer 3

Total cost of capital including installation

Question 4

Depreciable life

Answer 4

Period in which asset depreciated

Question 5

Preferred depreciable life

Answer 5

Short

Question 6

What irs allows as depreciable assets

Answer 6

Building
Vehicles
Machinery
Computers
Livestock

Question 7

Straight line depreciation

Answer 7

Evenly distribute depreciation amount across # of years

Question 8

Double declining balance

Answer 8

Accelerated method of depreciation

Get tax savings sooner

Question 9

Bill veeck

Answer 9

Bought white Sox

Wanted to depreciate something

Question 10

Roster depreciation allowance

Answer 10

Owners can depreciate 100% of purchase price of franchise over max of 15 years

Question 11

Arguments against bill veeck and roster depreciation

Answer 11

Contracts already reflect productivity
Players can improve
Owners do not own players

Question 12

Theoretical salvage value

Answer 12

Remaining value from double declining balance