We use Optical Character Recognition (OCR) during our scanning and processing workflow to make the content of each page searchable. You can view the automatically generated text below as well as copy and paste individual pieces of text to quote in your own work.
Text recognition is never 100% accurate. Many parts of the scanned page may not be reflected in the OCR text output, including: images, page layout, certain fonts or handwriting.
FORD THEATERS, INCORPORATED 509
Furthermore, it was possible that the equipment of the four operating Ford theaters could not be segregated accurately into several classifications.
On the other hand, he believed that certain weaknesses were inherent in the plan. For example, under the composite average method replacements became an immediate expense, because the equipment asset had already been capitalized and could not again be capitalized, and the replacement thereof through immediate expense would distort and incorrectly reflect the profit and loss results by an abnormal write-off during the period in which replacements had been made. If, under the composite method, a 15% rate was used for all equipment, and carpets were replaced in three years, the replacement would have to be treated as an immediate expense in its entirety instead of being spread over a three-year period, because the original installation of carpets was being depreciated by a composite 15% rate.3 Furthermore, composite averages tended to depreciate long life items too rapidly. For example, an organ and chairs written off under a seven-year composite average might have several remaining years of life that should still be reflected on the company's balance sheet.
The third alternative eliminated some of the principal objections to the composite method. The segregated depreciation rates used by the Publix Theaters Corporation were based on replacement records for the past 12 years and had taken into consideration changing conditions in the industry, particularly as to improvements of types and standards of equipment. While the various Ford theaters were somewhat smaller than the average Publix theater, they were of a generally comparable nature. It was recognized, however, that it might be necessary to make some allowance for the nature and grade of equipment and perhaps for the number of programs given daily in each theater. On the other hand, since it was necessary for the Publix Theaters Corporation to maintain the latest standards and highest grade of efficiency, equipment replacements perhaps were made oftener and as a result the rate of depreciation should not differ greatly from that applied to the less pretentious theaters.
The Publix Theaters Corporation's rates of depreciation segregated by classes of equipment were as follows:
3 Better Theaters , August 3, 1929.