The next question to be determined is whether there is, at the time of the appraisal, any non-physical value, and, if so, to select a method for computing it that will give a result that can be definitely supported as to the particular property under investigation. A study of the income accounts of the property being valued should be made. If the property is not earning a sufficient sum to pay its operating expenses, and taxes, and to set aside a fund to cover depreciation and obsolescence, there is clearly no intangible value of any sort to be added to the physical value. If, however, after all these charges are taken care of, there is a net earning which is large enough to pay 4 or 5% on the physical property and still leave a surplus, is it not perfectly reasonable and proper to hold that this surplus represents earnings on all intangible elements of value? The contention that all the different elements of non-physical value merge into one intangible value, not capable of separation, will doubtless be objected to by many engineers and corporation managers. Among the elements adding value to property have been described: _1.—"Going Concern" Value._—Professor Mead defines this as the value due to the fact that a plant has consumers actually utilizing its product, and that it is in actual and successful operation and has its business developed. This value is the worth of the plant in excess of a similar plant without connections, and constitutes an asset in the consideration of its physical value. Mr. Alvord has used the term "connected good will" as applicable to this element of value. The writer does not concede that "going concern" is a proper element to consider in the physical value, as it does not represent any part of the cost chargeable to capital, and the physical valuation should be confined to the determination of capital invested. It has already been argued that to the physical property as inventoried should be added proper figures to cover organization, legal expense, administration, engineering, and contingencies. All these items are in the nature of additions on account of the fact that the property is a "going concern." It is maintained that these costs should carry to the present value column as values, for the reason that all these services rendered in connection with the creation of the property remain, unimpaired in value, as long as the property is operated. When, however, a property ceases to be operated, and is abandoned and dismantled, not only do all these elements absolutely disappear, but also all increments of value by reason of the special use of the property are wiped out, and there exist only a lot of partly worn out and partly obsolete machinery and equipment, salable at scrap values, buildings constructed for a purpose which renders them unfit for other use, and land partly salable at going prices and much that will not sell at all.