Maybe they're made of paper-mache :-) Most likely for tax resons a
short life would allow a quicker depreciation


I was looking thorough regulatory filings on a company which owns some
tugboats in Freeport in the Bahamas and read that these tugboats have a
life expectancy of 5 years. That seems a bit short, esepcially after all
the hassle I've got in this newsgroup over using exterior grade plywood
with a life expectancy of maybe 10 years.

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On Sun, 01 Aug 2004 15:39:05 GMT, (Drew
Dalgleish) wrote:
Most likely for tax resons a
short life would allow a quicker depreciation

========================================

Exactly right, the actual life is no doubt considerably longer. Look
closely at the financial statements. They are probably generating a
fair amount of cash with the tax savings.

http://www.cr.nps.gov/maritime/nhl/foss.htm

Try the above site for the story of the Arthur Foss.

G

"Drew Dalgleish" wrote in message
...
Maybe they're made of paper-mache :-) Most likely for tax resons a
short life would allow a quicker depreciation


I was looking thorough regulatory filings on a company which owns some
tugboats in Freeport in the Bahamas and read that these tugboats have a
life expectancy of 5 years. That seems a bit short, esepcially after all
the hassle I've got in this newsgroup over using exterior grade plywood
with a life expectancy of maybe 10 years.

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William R Watt National Capital FreeNet Ottawa's free community
network
homepage: www.ncf.ca/~ag384/top.htm
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returned

maybe they meant the remaining life expectancy of the tugboats is 5 years
and left off the "remaining" expecting it would be understood. I'll have
to take another look.



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William R Watt National Capital FreeNet Ottawa's free community network
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"Drew Dalgleish" wrote in message
...
Maybe they're made of paper-mache :-) Most likely for tax resons a
short life would allow a quicker depreciation

There you go, this would allow the company to purchase new hardware more
often and continue to write it off their taxes. Then again maybe they loose
a lot of ships to pirates, this is the Caribbean after all....

mark