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Technology Stocks : GX Investors Thread

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To: Sweet Ol who wrote (32)	8/20/2001 11:05:17 PM
From: BWAC	Read Replies (3) of 586

<For example, we often junk computers long before they are depreciated.> And at the point you junk them, the REMAINING undepreciated carrying value of the asset SHOULD (and is required to be) wrote down to salvage value. Thereby removing the asset less any salvage value from the books. <You do not get to increase your depreciation just because the replacement cost has decreased. You have to depreciate based on the original cost. > Depreciation is over the estimated useful life of the asset. If that asset becomes impaired, or the useful life is found to be originally incorrect, then the depreciation schedule is accelerated. Assets are also required to be shown on the books at the lower of Cost or Market Value. Less Depreciation. Net would be the $11.8 Billion. If the market value of these assets are lower, then additional impairment charges to depreciation should have been made. They weren't. ------------------------------------------- When the current in place network is fully depreciated ($11 Billion worth of depreciation) and still producing revenue will you argue that it has no value at all?

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