InCapta Inc (INCT)

[rguyah]

XANADU
From the filing...


(b) DVD's and Video Games Library.

As of December 2005 the Company has purchased over $2,000,000 of
inventory and makes available 40,000 DVD and video game titles. We
acquire DVD's and video games from distributors through a direct
purchase agreement. Such purchases are recorded at the historical
cost. We depreciate our DVD's and video games library on a straight-
line basis over a twelve-month period. We currently have not assigned
a salvage value since it is our intention to not sell our library. In
the event that we do sell a portion of our library as result of slow
moving title rentals, we will re-evaluate our policy of depreciation
in relation to the salvage value.