技术经济学英文版演示文稿c41.pptx

4. 1Basic Tax StructureIn this section, we discuss two important concepts which are common to most types of tax analysis. The only requirement is that the business invests in durable (lasting more than one year) goods. For an exclusively service industry requiring no investment in durable goods, the concept of depreciation may not be relevant . Otherwise understanding of depreciation and income taxes is almost a universal requirement for a proper economic evaluation of any project.4.1.1 DepreciationDepreciation in literal sense means a decrease in value. For example, you buy a car today,—— In economic analysis, depreciation has a different meaning. Realizing that the existence of a corporation is perpetual, depreciation is treated as a replacement cost. That is, if you buy a piece of equipment which has a useful life greater than one year, the assumption is that you will have to replace that piece of the equipment at the end of its useful life. Therefore, some money has to be set aside during the useful life so that the equipment can be replaced. This yearly replacement cost is called depreciation. In other words, it is an allocation(分配) of the cost of the equipment spread over its useful life. The government allows the corporation to set aside this money for future replacement by not taxing this money.Although use of depreciation for durable equipment is the most common, it is also used for other properties. To generalize, a property can be depreciated if it satisfies the following characteristics:* It must be used in business or production of income. .* It must have a life longer than one year.* It must be something that wears out(磨损), decays(腐烂), becomes obsolete(陈旧) or loses value from natural causes.These characteristics are most appropriate for (适于)equipment; however, they can also be applied to building, patents and copyrights.Investment in such property is called a capitalized cost. In production operations, this cost will include costs of casing(下套管、固井),