14 BULLETIN" 919, U. S. DEPAETMENT OF AGRICULTURE. 
value at the beginning of the year the amount of depreciation during 
that year. The depreciation per year was based upon the remaining 
years of usefulness of the buildings. The average depreciation for 
the two years shows an annual depreciation of 4.5 per cent. 
There were no direct taxes on buildings ; but, since pasture figures 
were based on the raw or unimproved value of the land, it was neces- 
sary that the dairy should be charged with the taxes due to the im- 
provements caused by the dairy buildings. 
Insurance charges were taken from the receipts of the insurance 
companies. 
A monthly account was kept of the money spent for such items as 
whitewashing, repairs on doors, etc.; but, to determine the amount 
necessary for painting, roofing, and such expenses which come less 
frequently, it was necessary to make an estimate on each dairyman's 
buildings of the amounts required yearly for such purposes. The 
total cost of upkeep and repairs amounted to 3.1 per cent of the 
capital value of the buildings. 
EQUIPMENT. 
The interest charge on equipment was 7.4 per cent of the inventory 
value of the equipment. Tools and equipment around a dairy barn 
are usually worn out quite rapidly, which explains the large annual 
depreciation of 19.4 per cent. 
The charge for upkeep and repairs was 0.9 per cent and for 
milking-machine repairs 0.7 per cent. Supplies, such as gasoline, 
kerosene, washing powder, etc., amounted to 99 cents per cow per 
year. 
New equipment purchased during the year was added to the first 
inventory before subtracting the second inventory. 
CATTLE. 
Milk produced by a purebred cow has no greater value than that 
produced by a grade cow. Raising purebred cattle is a separate busi- 
ness involving a greater investment and resulting in larger credits 
for calves. In this investigation the purebred cows were given values 
of grade cows of corresponding production and purebred calves were 
likewise given credits as grade calves from dams of corresponding 
production. 
At the beginning and end of the year each cow was given an in- 
ventory value. The first value was based on the price at which the 
owner thought he could replace her. In order to avoid the influence 
of market conditions her subsequent value remained the same unless 
her owner thought that she had become a better or poorer cow. 
Interest was figured at the rate of 7 per cent upon the investment at 
the beginning of the year. 
