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Capital consumption adjustment (CCAdj)

The Capital Consumption Adjustment is the difference between private capital consumption allowances (CCA) and private consumption of fixed capital (CFC). Private capital consumption allowances consist of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation, calculated by BEA, for farm proprietorships, rental income of persons, and nonprofit institutions. Private CFC is a charge for the using up of private fixed capital. It is based on studies of prices of used equipment and structures in resale markets.