Mexus Gold US (MXSG)

[A Dinosaur]

We (actually, Paul)know exactly what the land/lease cost, the cost of every piece of equipment, the wages if the workers, cost of chemicals, etc. The end value of the equipment is what GAAP and IRS says it will be. They also say how long it will take to reach that number. However, once the residual value reaches zero doesn't mean that the useful life is gone to PT; only to the accountant.

In my previous example, the IRS says it costs $0.575/mile this year. Last year was $0.58/mile. Is that realistic? The courts think so. The alternative is to use their standard depreciation and the actual maintenance and fuel cost. Either way, it's a known quantity.

Dino