In re the Accounting of Pershan

McGarey, S.

There remains to be determined in this proceeding the question of the right and duty of the trustees to set aside a depreciation reserve and maintain the same out of rents collected by them before arriving at the net income available for distribution. The court holds that the trustees have not only the right, but are under a duty, to set aside a part of the rents received by them as a reserve for physical depreciation, caused by wear, tear and obsolescence, as distinguished from depreciation in value because of economic factors.

The question arises by the objections and answer of…