trunkformulamethod

                           Certificate of Appraisal

I, Daniel R. LaDuke, Certified Arborist NY-1108A, ___________________ CERTIFY to the best of my
knowledge and belief:

1.        That the statements of fact contained in this plant appraisal are true and correct.

2.        That the appraisal analysis, opinions and conclusions are limited only by the reported
assumptions and limiting conditions and that they are my personal, unbiased professional analysis,
opinions and conclusions.

3.        That I have no present or prospective interest in the plant(s) that is the subject of this appraisal
and that I have no personal interest or bias with respect to the parties involved.

4.        That my compensation is not contingent upon a predetermined value or direction in value that
favors the cause of the client, the amount of the value estimate, the attainments of the stipulated
result, or the occurrence of a subsequent event.

5.        That my analysis, opinions, and conclusions were developed and this appraisal has been
prepared in conformity with the Guide for Plant Appraisal (9th edition, 2000) authored by the Council of
Tree & Landscape Appraisers.

6.        That method(s) found in the appraisal are based on a request to determine the value of plants(s)
considering reasonable factors of plant appraisal.

7.        That my appraisal is based on the information known to me at this time. If more information is
disclosed, I may have further opinions.

8.        That, as a result of my examinations, investigations and analysis of the plant(s) and all of the data
pertinent thereto, and in light of my experience, the value of the plants(s), as of _______________,
estimated to be as detailed within this report.

This section involves an appraisal of the Black Walnut tree owned by John Doe and located at 123 Sunny Avenue,
Queensbury, NY 12804, Map No. 123.45-6-7, elevation 381.0 in year 2007. The goal for this report is to establish
a reasonable monetary value for the aforementioned Black Walnut tree. Using the principles outlined in the Guide
for Plant Appraisal, 9th Edition, a professional should be able to arrive at fair and reasonable plant values.

There are three ways to appraise plants: Cost Approach, Income Approach and Market Approach. Four primary
factors help determine the value of landscape plants. These factors are essential when appraising the value of a
plant using Replacement, Trunk Formula, Cost of Repair, Cost of Cure and other appraisal methods. Procedures
for appraising the monetary value of trees using Trunk Formula and Replacement Cost methods are described
below. The Trunk Formula Method will be utilized for this report and I include a brief description of the
Replacement Cost Method as a comparison.

The Guide For Plant Appraisal, 9th Edition differs from previous versions in that
1.        Species ratings are used to adjust the Cost of Replacement trees as well as the increase in value of trees
larger than replacement size.
2.        In determining the Condition rating of a tree, both structure and health are rated for the roots, the trunk and
the scaffold branches, while small branches and twigs, and foliage and/or buds are rated only for health.
3.        The rating of a Site is based on its relative market value within the area or region in which the Site is located,
as well as the general appearance of the Site in which the appraised plant is located.

Two Cost Methods of Plant Appraisal

The Replacement Cost and Trunk Formula methods use species ratings, regional practices and costs as
determined by a Regional Plant Appraisal Committee and/or Appraiser or by Modified Information.

Replacement Cost Method

The Replacement Cost Method can be used to appraise the value of transplantable landscape trees, shrubs, and
vines. The Appraised Value of a landscape plant is based on the cost of planting a plant of the same or
comparable species, conditions, and size in the same place. If the appraised plant is to be replaced, the costs of
plant removal and cleanup are added to obtain the Appraised Value.

Trunk Formula Method

The Trunk Formula Method is used to appraise the monetary value of trees considered too large to be replaced
with nursery or field grown stock. Determination of the value of a tree is based on the cost of the largest commonly
available transplantable tree and its Cost of Installation, plus the increase in value due to the larger size of the tree
being appraised. As with the Replacement Cost Method, the Basic Tree Cost is adjusted according to Species of
the tree, its physical Condition, and its landscape Location (Site, Contribution and Placement) to obtain the
Appraised Value of the tree.

TRUNK FORMULA METHOD

Property: John Doe, 123 Sunny Avenue, Queensbury, NY 12804
Date: 9/25/2004
Appraiser: Dan LaDuke, Certified Arborist, NY-1108A

Field Observations
1.        Species: Black Walnut tree (Juglans nigra)
2.        Condition: 91%
3.        Trunk Diameter: 17 in.
4.        Location % = [Site 79% + Contribution 75% + Placement 50%]/3 = 68%

Regional Plant Appraisal Committee and/or Appraiser-Developed or Modified Information
5.   Species rating        90%
6.   Replacement Tree Size (diameter)        1 inch
           (Trunk Area)        0.785 inches squared TAR
7.   Replacement Tree Cost        $ 60
8.   Installation Cost        $ 520
9.   Installed Tree Cost        $ 580
10. Unit Tree Cost        $ 76 per inches squared
       (see Regional Information to use Cost selected)

Calculations by Appraiser using Field and Regional Information

11. Appraised Trunk Area:
       (TAa or ATAa from tables)
       Or diameter (d)2 X 0.785 = 227 inches squared
12. Appraised Tree Trunk Increase (TAincr) =
       TAa or ATAa 227 inches squared (#11) – TAr 0.785 inches squared (#6) = 226 inches squared
13. Basic Tree Cost = TAincr (#12) 226 inches squared X Unit Tree Cost (#10) $76 per inches squared
     +Installed Tree Cost (#9) $580 = $17,756
14. Appraised Value = Basic Tree Cost (#13) $17,756 X Species rating (#5) 90% X
      Condition (#2) 91% X Location (#4) 68% = $9,889
15. If the Appraised Value is $5,000 or more, round it to the nearest $100; if it is less,
      round it to the nearest $10.
16. Appraised Value = (#14) $9,900.00

Items 5 through 10 are determined by the Regional Plant Appraisal Committee and/or Appraiser-Developed or
Modified Information. The Wholesale Replacement Tree Cost, the Retail Replacement Tree Cost, or the Installed
Tree Cost (#9) divided by the Replacement Tree Size (#6) can be used for the Unit Tree Cost (#10), or it can be set
by the Regional Plant Appraisal Committee.