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Aug 11, 2004 · 1. Multiply the original property cost by the cost-of-living multiplier. $250 x 1.46 = $365 (equals computed replacement cost) 2. Depreciate in accordance with the Allowance List-Depreciation Guide (sec. 45, ex. 03). In this example, the depreciation rate is 5 percent per year and the item is 9 years old. 5% x 9 years = 45% (equals depreciation ... ................
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