VALUATION OF ASSETS 



CHANGES IN STATUS DURING YEAR 



I. CAPITAL ACCOUNT 



a. Deductions from Capital 



i. Depreciation 



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These withdrawals may be induced by the sale of certain of 

 the capital assets, or by their depreciation in value. Instead of 

 creating a depreciation fund, the investment in a business may 

 be steadily reduced. This would be the course pursued in 

 lumbering, should it be found impossible to reinvest the income 

 in new timber stumpage or otherwise continue the operation. 

 The cancellation of bonds issued against standing timber must 

 keep pace with the cutting of this timber. 



b. Additions to Capital 

 i. Additional Investment 



