Don, incused is a characteristic of the mold where the image is recessed into the surface of the chip. Cancellation is a physical modification to the chip to declare it to have no redeemable value. Drilling is one way to cancel. If TCR lists a chip in new or very good condition, and yours is cancelled, yours is probably worth less than the TCR value. If the TCR lists a chip in cancelled condition and yours is not cancelled, yours is probably worth more than the TCR value. The TCR value is for the condition listed. Look at the Old Reno $5 chip. TCR actually has it listed in both conditions, because the cancelled is so common and the uncancelled is quite rare. Some chips are so rare in either condition, the cancellation isn't that much of a detraction. It just depends.