9. What is the attitude of the law in regard to depreciation?
10. Give a clear distinction between repairs and renewals.
11. What relation is there between the reserve for depreciation and the productive efficiency of the plant?
12. Explain how the efficiency of the unit bears a different relation to depreciation than does that of the plant as a whole. Give an example.
13. Is it correct to allow fluctuations in market value to influence the charges to depreciations?
14. Give a clear distinction between depreciation and depletion.
Chapter VII
1. Give a complete outline showing the cause of depreciation as related to: (a) Tangible property. (b) Intangible property.
2. In what ways is age a distinct cause of depreciation? Wear and tear?
3. Explain “functional” depreciation.