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Other items of flight equipment are estimated at $708,750, the major portions of this amount represents [[represent]] spare parts in the amount of $645,000. National questions the soundness of this estimate because Eastern failed to count and inspect each item in taking t e [[the]] inventory. While the accuracy of the inventory may be subject to question, it is significant that the total evaluation assigned thereto is not appreciably higher than the value assigned to such parts in the prior acquisition case when Eastern valued such items at $578,000.

National also questions the soundness of Eastern's estimate of ground equipment in the amount of $503,500 in view of the fact that this item was appraised at $208,000 in the prior Eastern-Colonial Acquisition Case. Eastern points out that the increase in ground equipment results from including in the inventory small tools, office supplies and other miscellaneous items which have a large actual value, but which when purchased are charged off as expenses and not entered on the books of the carrier as assets. 

While the increase in the estimate of ground equipment appears large, it must be conceded that small tools and other items, the cost of which are normally written off as current expenses, have real value. Eastern's estimate of such assets is a judgement figure with little to support it other than the judgement of its official making the appraisal. While there is nothing to indicate that the estimate is not accurate, the method through which it was derived raises some questions as to its reliability. 

Transcription Notes:
The error in "the" in the first paragraph is accurate to the writing.