Image provided by: University of Oregon Libraries; Eugene, OR
About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Jan. 6, 1960)
( HERALD AND NEWS, Klamath Falls, Ore. Wednesday. January 6, MfiO PAGE ELEVEN i SCOUT HEWS TRAINING SESSIONS Five training sessions for Girl Scout leaders are scheduled this month in the Girl Scout office, Melhase Building, Main Street. New Brownie leaders are of fered orientation into the program January 11 from 9:30 a.m. until 2 p.m. New leaders will learn fun damentals of organizing, planning and executing Brownie troop ac tivities. A fly-up workshop for leaders of fourth grade youngsters, set for January 14 from 10 a.m. until noon is designed to assist leaders in preparing girls to meet tender foot rank requirements. Fly-up ceremonies and induction to the intermediate program also will be covered. A Brownie program workshop to help leaders plan for the next five months will be conducted Jan uary 19 from 9:30 a.m. until noon. An intermediate badge workshop for leaders of fifth and sixth grade girls is planned for January 21 from 9:30 a.m. until noon. Second class requirements will be stressed, and the workshop will review procedure for fulfilling proficiency badge requirements. A workshop for leaders of first class, or sixth and seventh grade girls, is scheduled for January 28 from 9:30 a.m. until noon. Leaders will be briefed on requirements for proficiency badges and first class rank to be conferred during the Spring Court of Awards. They also will receive an introduction to ihe curved bar program. Participants should bring note books, pencils, Leaders' Guides and handbooks. Registration is re quired at least three days in ad vance. The scout office phone num ber is TU 4-4541. NEIGHBORHOOD MEETINGS Two neighborhood meetings have been conducted this month by adults registered in the Girl Scout organization, Klamath Area Coun cil, and 10 more are scheduled dur ing January and February. The meetings are for neighbor hood chairmen, consultants, organ izers, leaders, assistant leaders and troop committee members. The schedule: Fairhaven neigh borhood, 9 a.m., January 7 in the home economics room of Fairha ven School; South Municipal neigh- borhood, 10 a.m., January 12 in the county library; Falcon Heights neighborhood, 1 p.m. January 25 place to be arranged; Bend neigh borhood, the evening of January 26 in the Bend City Hall commission room. Alturas and Adin neighborhood the evening of February 1, place to be arranged; North Municipal lieighborhood, 10 a.m. February 1 in' the county library; Fairhaven 9 a.m. February 4 at the school; South Municipal, including Alta- mont, Stearns, Shasta, Peterson and Ferguson schools, 10 a.m. February 9, at the county library; Falcon Heights, 1 p.m. February 22, place to be arranged, and Bend, the evening of February 23 in the city hall commission room, Income Tax Facts Editor's Note: This is one in a aeries of articles on small-business tax problems. These articles are based on information provided by the American Institute of Certified Public Accountants and the South ern Oregon Society of Certified Public Accountants. ADDITIONAL FIRST YEAR DEPRECIATION The purchase of equipment can be a drain on any business, but particularly on the smaller busi nesses. It is for this reason that one of the amendments to the tax law in 1958 was aimed at easing the problem to some extent by allowing an additional deduction lor depreciation in the year equip ment is acquired. To see what a difference this new allowance can make, assume that last year you bought a new ma chine for $10,000 with a useful life to you of 12 years. Prior to thp ampndmpnt. thp maximum amount of depreciation you could ileduct in thp first vear was S1.6ti7 Rut hv taking advantacp of the new allowance you could get a maximum first year deduction of $3,333. To take advantage of the addi tional first year depreciation allow ance, the property being de preciated can be new or old, but it must be "tangible personal property. This includes machin ery, fixtures, equipment, and other personal property used in your trade or business, but it excludes improvements to your buildings or real estate. There are also some special rules that apply if the property is purchased from a rel ative, or if it is purchased by a corporation from a stockholder or by a partnership from a partner. You should check into this if it seems to apply to equipment you acquire lor your business. You can take the additional first year allowance on up to $10,000 worth of property purchased dur ing the year. In the case of an in dividual taxpayer filing a joint return, the limit is $20,000. In a partnership, the limit is applied to each partner. Let's assume that vou purchased $30,000 worth of equipment during the year. On your tax return tor Hie year, you would have to designate the $10,000 worth of purchases to which you wish to apply the additional first year allowance. The equipment selected must hrn-n a useful life to vou of six years or more. Your determina tion of the useful life is very im portant. Treasury Department Bul letin F (available from the U.S. Government Printing Office) lists a ureal manv items of business equipment and the useful life of each. However, fhe useful life re ferred to in the bulletin is the eco nomic or useful life span of the equipment. If you expect to give more or less than usual use to a piece of equipment, you must give consideration to this fact in de termining a reasonable expectation oi tne equipment s usciui nic to von. If the property you have pur-! chased meets tne requirements mentioned, your additional first year depreciation allowance would be 20 per cent. This allowance would be in addition to the deduc tion you are allowed under any acceptable method you may choose for handling depreciation. It is immaterial when during the year the property was acquired. So long as you are en titled to a depreciation deduction hi Ihe year of purchase, you are entitled to the full 20 per cent ad ditional deduction. However, it may be taken only in the first year in which you are allowed a depre cation deduction with respect to the property. It is the amount you pay for equipment that serves as a basis for the additional first year al lowance. For example, a new ma chine costs $3,000. You manage to get the machine for $2,500 by trad ing in an old one. In this situation, only the $2,500 counts as a basis for your first year depreciation allowance. However, in computing your regular depreciation, you would include in your cost the amount represented by your trade-in property. For example, let's say that tho eld machine had a value on your books of $1,100. In computing the i dditional first year depreciation, the portion of the cost of the new machine represented by the trade-in is ignored and you could deduct as first year depreciation 0 per cent of $2,500 or $500. How ever, In computing your regular depreciation deduction, Ihe trade in counts, and as is the case with trade-ins, at its unrecovered cost, not tho amount allowed. Thus, you paid $2,500, less $500 first year de preciation equals $2,000 plus the trade-in cost to you of $1,100 equals $3,100, which is the amount to be used in computing depreciation under whatever method you may be using. Some methods of depreciation require that you subtract salvage value (your estimate of the amount you can gel for the prop erty after you are finished using it) from the cost of the property before figuring your depreciation deduction. However, salvage value dees not have to be considered in computing your additional first year allowance. It is as though the additional allowance were tak en right off the top. Let's see how this works with two of the more common methods of com puting depreciation. For example. if you purchase a piece of equip ment for $10,000 with a useful life to you of 12 years, your first year additional allowance would he $2,000 (20 per cent of $10,000). Your cost would be reduced by the $2,000, and your regular meth od of depreciation would be fig ured on the balance of $8,000. With the straight-line method, you first subtract the estimated salvage value, let's say $500, leav ing you with a depreciable balance of $7,500. You spread this amount equally over the useful life of the equipment, which would be $625 each year (this can be stated as a percentage, 8 1-3 per cent a year for 12 years). The additional al lowance together with straight-line depreciation, means a deduction in the first year of $2,625. Suppose that you use the declining-balance method of deprecia tion. Willi this method, salvagi value is not subtracted from th( cost. Your depreciation deduction will be a fixed percentage of the. unrecovered cost each year. The, percentage may not be mora than twice the straight-line rate, or in this case, 16 2-3 per cent. On the balance of $8,000 then, your first year deduction with the declining balance method would be $1,333, Adding this to the additional al lowance of $2,000, you get a total first year depreciation deduction of $3,333. As you can see, by selecting one or another method of depreciation and by electing to use or not use the additional first year allowance, you have wide latitude in deter mining how your depreciation deductions will be spread over the useful life of your equipment. Each deduction will reduce your taxable profits in the year it is taken. It is up to you to decide, in light of present and future estimates of your operation, whether it would he better to have larger deductions in the earlier years or to have deductions spread more evenly. Centenarian Dies PALO ALTO, Calif. (AP) -Elizabeth Van Epps, who de scribed her declining but active years as "living in green pas tures," died Tuesday at 104. 1 Born near Schenectady, N.Y. in 1855, she came to California with her family in 1905. She spent her last years , sewing, reading and Visiting her 21 direct descendants. Area Masons To Install TULELAKE 1960 oificcrs of Canby Cross Lodge, No. 679 F. & A.M. will be inducted at the 26th annual installation of officers at the Masonic Temple, Saturday, January 9. The ceremony will be gin at 8 p.m. with Reginald Rey nolds, inspector 108th Masonic Dis trict, state of California, as in stalling officer. Lester Cushman will be installed as worshipful master; Robert Ad dison, senior warden; Lewis Win field, junior warden; Dick Falcon er, treasurer; Bill McBride, sec retary; Richard Fuller, chaplain; Lester Turnbaugh, senior deacon; John Bettandorf, junior deacon; Estel Allison, marshal; Jim De Shon, senior steward; Morris Ott, junior steward; Alvah Hardman, tiler. V. G. Reinmiller, past master of Canby Cross Lodge, will be master of ceremonies; Douglas Thomas, past master of Canby Cross Lodge, will be installing chaplain and Mrs. Kay Paulson will be musician. Trustees are Ben Wilson, V. G. Reinmiller and George Reiben. Past masters of Canby Cross since 1939 incldde Earl Ager, Ray Able, Ralph Ganger, George Rei ben, Ned Mitchell, Luke McAnulty: Fred Fisher, Otis Roper, Lawrence Horton, Ival Wolfe, Floyd A. Boyd Ray Laird, Bud Hagerty, Gib Os borne, Al Hardman, V. G. Rein miller, Burris Short, A. G. Boyd, Dean Callas, Douglas Thomas, V.G. Reinmiller (second term), Ben Wil son, Estel. Allison, .Bill Allen. FROZEN FOOD SALE! SA VE IN '60 BUY LOW! Ccdargreen Spinach, Squash French Fries 10 01 pk9$ M9 Fresh Locally Made Crater Lake Cottage Cheese Pint 23' Please Apartment Fire Causes Problem BEVERLY HILLS, Calif. (AP) Fire in an adjoining apartment smoked Jill St. John out of a sick bed Tuesday night. The red-haired actress, fiancee of Lance Reventlow, son of heiress Barbara Hutton, was recuperating from flu when fire started in the building. She threw on a coat and was led to safety by a fireman. Firemen blamed a faulty heat ing unit for the blaze and esti mated damage at $25,000. ENROLL NOW! )twi Dance officii I WINE MA IHIiOitriEIL KILAMAiriW FAILILS 10 24 5 (5 ITlEWAlRir AVE NEW CLASSES Starting In.., ADULT BALLROOM DANCING. BALLROOM CLASSES FOR SCHOOL CHILDREN AGES 11 to 16. V Hour Instruction Period Practice Periods V Latest Dance Steps Taught Make Your Reservation Now! Classes Start 2nd Week of January KINDERGARTEN CLASS HAS OPENING FOR FIVE STUDENTS Dancing, Music, Rhythm Exercises Along With Pre-School Studio. FREE Transporta tion In Our Special Volkswagen Buses. ' University Trained Instructor! Don't Delay... Call Today! WIN EM A HOTEL - -TU 4-4181 OR MRS. HARRIET LeCours TU 2-3244 THURSTON DANCE STUDIO "IT'S EASY TO BE A GOOD DANCER" Dog Food Tall Tins 12:98' NONFAT DRV MILK 12 qt. size 89 C FLOUR PERFECT FOR ALL BAKING FANCY PRINT CLOTH . , BAG LDS. FOR Specials Fop Thurs. Through Tuesday WINTER MEALS Soran's Whole Bodied Stewing Chickens 29 Fresh, Light Spare Ribs " I riiinrlaia s r I . . v. or White X " MARGARINE X, Chicken Noodle n JC5 A. ft jCSk. ( Dinner 49cl 3'bs49c V TunO Grated EGG NOODLES J I Penco DUNDEE RFFTv Tinc u Armours Link Sausages 4!l Plumrose Canned Pork Loins 2-Lb. Tin $98 Assorted Colors f J I CErt Kl VI III I Wll TISSUE Low Fat 100 Milk Product Frozen Medo Bel DESSERT AiJt F,avor TOMATO Hudson House JUICE ( OVERLOOK OTTERBROOK PEAS Vet's 9-oi. Tins Cat Food BEANS 5 29 303 Tins Choice Patty Dae, Moist, Fresh Raisins 2 pkg- 3 7 Del Monte, Large Dried Prunes 2 lbs 59 Medo Bel Homogenized Half Gallon 50 Gerbcr's Strained W Baby Food 5 "59 Patty Dae - Pearl A P Rice L&Lj VANILLA iJ Imitation Full Pint Bottle Large White Beans 2-lb. pkg 25 Fresh Baked in Klamath Bread lg. loaf 31 mm. Crisp Large Size CARROTS Seedless Navel ORANGES bag BETTY CROCKER PILLSBURY OR BALLARD KITS f flips mm Good Site Avocados - fMC CAN VARIETY HEALTH AND BEAUTY AIDS POST OFFICE
