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Technology Stocks : AUTOHOME, Inc

ATHM 22.04

-4.0%

Jan 30 9:30 AM EST

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To: Frank A. Coluccio who wrote (14542)	8/15/1999 3:48:00 AM
From: KW Wingman	Read Replies (1) of 29970

<How long will it take T to redo their regional networks with the new 75 home architecture? To a great extent the answer to this lies in how much remaining plant needs to undergo their first upgrades, still, and the remainder has to do with the depreciation formulae they are using.> If the new equipment or installation replaces or makes part of the old installation worthless, that now worthless part of the installation can be immediately written off. You do not continue to depreciate a worthless item, you expense it in the current tax year. In this way T may not have to be stuck with obsolete technology because of the tax code. As you pointed out, there are many other factors to consider before the upgrades are done. Regards, Wingman

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