5 - 



If John Fruitgrower purchasod 20 acres of bearing orchard in 1965, 

 for $12,000 and 10 acres of 3 year old orchard for $2,000, he would al- 

 locate part of the purchase price to the land and part to the trees: 

 tlie arithmetic might go like the following: 



Bearing orchard land, 20 acres $ 2,00U 



15 year old trees 10,000 



Estimated remaining life on trees 15 years 



Investment credit on $10,000 used property 



7% 



? TOO tax credit 



Depreciation straiglitr line 10,000 _ $5^7 ^ annually 



15 ^ 



T]irc>e year old orcliard 



land value, 10 acres $ 1,000 



Growing trees $ 1,000 



add expenditures (cap- 

 italized) to bearing 

 age 1970 3,000 



4,000 



Trees qualify as new property in year of bearing 197 0. 

 Estimated life 1970-1990. 



Investment credit 1970 $4,000 



1% 



$ 280 tax credit 



Depi'eciation $ 4,000 = $200 per year annually (Beginning in 1970) 

 20 years 



Ori-'hard trees and vines qualify for investment credit cither as 

 new or used property if purchased. 



In the case of additional orchard plantings such property qualifies 

 in the year of bearing; its cost is the capitalized value of the trees 

 at the time, for depreciation purposes and this cost is the amount which 

 is used for determining investment credit. 



*************** 



INSECT SPECIES COLLECTED FROM APPLE TREES 



H. E. Wave 

 Department of Entomology and Plant Pathology 



Fruit growers may be interested to l<now that at least 763 species 



of insects have been Identified from insect collections taken from apple 



trees. Only a small number of these insect species are of economic im- 

 portance to the industry. 



