necessitating an adaptation of the equipment to
uses for which it was not originally intended.
At the time of installation the rate of depreciation must be based
only on the normal factors—things which can with reasonable certainty
be counted on. At intermediate periods in the life of the asset, a
physical inspection should be made to compare the actual depreciation
of the property with the estimated. If, then, it is found that any
contingent factors have become real or reached the point of reasonable
expectancy, these provide the basis for an adjustment of the rate for
the remaining life-term of the asset.
Basis of Normal Rate
With regard to the normal rate, the following items demand first
consideration:
“1. Exterior or movable apparatus
(a) Abuse
(b) Neglect
(c) Temperatures
(d) Oxidation
(e) Irregular shocks in use, such as starting
or braking, also road or rail defects