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estimated salvage value of the equipment at the end of that period. The cost items under C 0 w,, are depreciation, return on investment, applicable taxes, and other costs such as insur ance, storage, and replacement escalation. Depreciation Depreciation is a noncash flow accounting method for deter
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Equipment used to build capital improvements. You must add otherwise allowable depreciation on the equipment during the period of construction to the basis of your improvements. See Uniform Capitalization Rules in Pub. 551. Section 197 intangibles. You must amortize these costs. Section 197 intangibles are discussed in detail in chapter 8 of ...
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