Opinion ID: 545550
Heading Depth: 3
Heading Rank: 1

Heading: Useful Life of Maintenance-of-Way Equipment

Text: 20 Maintenance-of-way equipment includes large cranes (class 310), small cranes (class 320), ballast working machines (class 330), and a miscellany of other related equipment (class 340). The Tax Court found an average useful life of 10 years for all classes except for class 310 which it found had an average useful life of 15 years. Carland argues that these findings improperly disregard Carland's own experience, thereby violating Massey Motors and Dinkins. Carland contends that the record shows that Carland's maintenance-of-way equipment had a much shorter life, generally 3 to 5 years. 21 The record shows that the Tax Court findings were based on Carland's own detailed asset retirement data over a period from 1964 to 1984. Based on this data, the court found the useful life estimates made by one of Carland's witnesses unrealistic. Our review of Carland's retirement schedule reveals that of the thirteen class 310 units placed into service between 1964 and 1975 only seven were listed as being retired by 1984. 11 The average life of these seven units was approximately 12 years, with two having been held for over 16 years. The data on the other maintenance-of-way equipment shows service periods ranging from 1 to 18 years with an average of roughly 10 years. See Jt.App. at 988-90. In making its findings the Tax Court fully acknowledged that some of the retired equipment may not have been recorded. Based on this evidence we cannot say that the Tax Court was clearly erroneous in its findings regarding the useful life of maintenance-of-way equipment.