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Politics : Formerly About Advanced Micro Devices
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To: tejek who wrote (100034)3/26/2000 3:28:00 PM
From: brushwud  Read Replies (2) of 1572312
 
I am not an accountant but depreciation is not an expense but rather its a tool or formula that participates in determining how much taxes are to be paid by a company each year...

I just wanted to point out that depreciation is indeed an expense. Expenditures on plant and equipment which are expected to be used for more than a year are capitalized as assets on the balance sheet and depreciated year by year. It's a way of spreading the expense of a capital investment over its expected useful life even though it might have been made all at once. This accounting concept would exist even in the absence of taxes.
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