Accounting "sleight-of-hand"

Dan , this indeed accounts for a lot of historic equipment still around years after they were off the books . By simply removing equipment from the books an industry like a railroad can save a lot on taxes .And it is possible that local employees were behind making the #40 "go away" on paper. This may be the real story of that great NN equipment still being around .
On some railroads lcomotives and cars were sold to third parties ,but stayed on the property long enough to suddenly "reappear" on the paperwork . This happened to Sierra Railroad Baldwin 2-8-2 #34 .It was off the books in the early 1960s(I think the White Mountain Scenic RR in Arizona was the owner) , but stayed parked in the Jimtown roundhouse .Then ownership was transferred back and #34 ran on the railroad in the 1970s .
Some railroad equipment may have been preserved by classifying it as "scrap" or "salvage" instead of being operable . I suspect that might be how Mike Kovalchic was able to keep the EBT a complete entity .