The Exhibitor (1950)

telTseal cuts DRIVE-IN w.rma Not only is TELESEAL the most ef¬ ficient low cost cable for under¬ ground use, but it costs less to install, because you can bury TELESEAL directly in the ground, even in damp locations, without conduits or other protection. TELESEAL is made like a miniature submarine cable with a tough, long-wearing neoprene jacket for extra protection. TELESEAL also is provided with lasting adhesion of the inside rubber insulation to the conductor by means of Teleplate,* a Whitney Blake exclusive process. TELESEAL FOR ECONOMICAL, EFFECTIVE, LOW-COST UNDERGROUND SOUND TRANSMISSION For further information, see your theatre supply house or your local Graybar warehouse. 2. Outdoor Equipment This group includes such items as the screen, car speakers, direction lights, chairs and seats, playground apparatus, and other equipment which remains outdoors and is subject to wear and tear by the weather. This type of equipment should be depreci¬ ated at the rate of 20% per year. 3. Indoor Equipment Included in this category are: the projectors, generators, sound system, rewind table, film cabinet, rewinding machine, booth chairs, film splicer, fire extinguishers, record player, micro¬ phone, and ticket machine. This type of equipment should be depreciated at the rate of 10% per year. 4. Office Equipment In this group are included safes, adding machines, typewriters, filing cabinets, desks, chairs, and other sim¬ ilar office accoutrements. This equip¬ ment should also be depreciated at the rate of 10% per year. 5. Automotive Equipment Since drive-ins are usually located at some distance from the centers of cit¬ ies, a jeep, auto-truck, or other means of transportation is generally needed to obtain supplies, advertising mate¬ rial, and other items necessary to the operation of the theatre. The outdoor operator usually also has on hand car jacks and other small tools for the repair of tires, so that in the event of blowouts or tire difficul¬ ties, he can assist the patron in making temporary repairs. This type of equip¬ ment should be depreciated at the rate of 25% per year. Second Method This method of calculating deprecia¬ tion, as shown in the table below, has been devised by a large theatre circuit which is currently operating several drive-in theatres. Its breakdown of the problem is based on a straight average annual depreciation of 37.90% of the re¬ maining book value of the property and enables the major share of the capital investment to be charged off during the first four years of a projected ten years. Conclusion It is important, however, that the two methods described above are offered only as helpful suggestions in figuring drivein depreciation. Although they have thus far been accepted in the cases in which they have been used, they have not, up to the present time, won any particular sanction by the Government. It appears reasonable to assume, however, in view of the respected sources from which they have emerged, that they may be usefully employed as temporary measures until such time as Federal authorities make different rulings on the subject of drivein depreciation. However, it is quite pos¬ sible that governmental decrees on the matter, when they do crystallize in defi¬ nite form, will closely parallel the methods outlined here. Mexico's First Drive-In Opens New York — Mexico’s first drive-in the¬ atre, the 650-car Auto Cinema Lomas, opened May 4 in Mexico City. President Aleman, the nation’s chief executive, in¬ augurated the theatre before an audience of invited guests. DEPRECIATION— DIMINISHING BALANCE— 10 YEAR LIFE Book Value Current Book Values Beginning Depreciation End of Reserve Year of Period 37.90% Period Accumulated 1 131,118.67 49,693.98 81,424.69 49,693.98 2 81,424.69 30,859.96 50,564.73 80,553.94 3 50,564.73 19,164.03 31,400.70 99,717.97 4 31,400.70 11,900.86 19,499.84 111,618.83 5 19,499.84 7,390.44 12,109.40 119,009.27 6 12,109.40 4,589.46 7,519.94 123,598.73 7 7,519.94 2,850.06 4,669.88 126,448.79 8 4,669.88 1,769.88 2,900.00 128,218.67 9 2,900.00 1,099.10 1,800.90 129,317.77 10 1,800.90 682.23 1,118.67 130,000.00 No scratching, tearing or pinching hazards. Back and seat in natural finish or durable enamel. Baked enamel finished gray iron standards. Ball bearing hinges. Rust-resist¬ ing hardware. Write for literature and prices. IDEAL SEATING COMPANY 519 Ann St., N. W Grand Rapids, Mich. PT-20 PHYSICAL THEATRE DEPARTMENT of EXHIBITOR June 28, 1950