Exhibit 1: Crane Costs to be Capitalized or Expensed

Category
Crane
Shipping, Handling, and assembling
Operator Training
Consultant operator
Severence for forklift operators
Support beams for dock
Special paint work
Delta Cargo stencil
Cumulative maximum costs
Salvage value
Depreciable cost

Cost
Capitalize
$
2,100,000
###
$
50,000
###
$
15,000 $
20,000
$
5,000
$
25,000
$
40,000
$
30,000 $
40,000
$
3,000 $
30,000
$
3,000
$
2,268,000 $ 2,243,000
$
100,000
$ 2,143,000

Expense

$
$
$

15,000
5,000
25,000

45,000

Exhibit 2: Depreciation Method Comparisons

Depreciable Cost:

2,243,000

Straight Line (SL)

Expense
Net Book Value
2005 $
214,300 $
2,028,700
2006 $
214,300 $
1,814,400
2007 $
214,300 $
1,600,100
2008 $
214,300 $
1,385,800
2009 $
214,300 $
1,171,500
2010 $
214,300 $
957,200
2011 $
214,300 $
742,900
2012 $
214,300 $
528,600
2013 $
214,300 $
314,300
2014 $
214,300 $
100,000
2015
2016
2017
2018
2019
Total

2,143,000

Years:
Double Declining (DDB)
Expense
$
448,600
$
358,880
$
287,104
$
229,683
$
183,747
$
146,997
$
117,598
$
94,078
$
75,263
$
201,050

2,143,000

10

ble Declining (DDB)

Net Book Value
$
1,794,400
$
1,435,520
$
1,148,416
$
918,733
$
734,986
$
587,989
$
470,391
$
376,313
$
301,050
$
100,000

Salvage Value:

$100,000

Depreciation
Expense Difference
$
(234,300)
$
(144,580)
$
(72,804)
$
(15,383)
$
30,553
$
67,303
$
96,702
$
120,222
$
139,037
$
13,250

Exhibit 3: Bonus Plan Calculations

Budgeted Income Statement
Revenues
Selling, general, and administrative expenses
Earnings before interest, taxes, depreciation and other income
Depreciation
Earnings before interest, taxes and other loss on sale of assets
Gain or Loss on Sale of assets
Interest expense
Earnings before taxes
Taxes (35%)
Net Income
Bonus Pool Calculations
Earnings before taxes
20% allocated to bonus pool

$
$
$
$
$

2005 (DDB)
2,238,500
597,250
1,641,250
448,600
1,192,650
###

$
$
$

38,000
1,348,950 $
472,133 $

###
1,114,650
390,128

876,818 $

724,523

$
$

1,348,950 $
269,790 $

1,114,650
222,930

$
$
$
$
$
$

2005 (SL)
2,238,500
597,250
1,641,250
214,300
1,426,950
40,000

page 440 efining capitlize

Refurbished 60000 and will be reinbursted later

Repairs expense
cash

60000
60000