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Technology Stocks : Intel Corporation (INTC)

INTC 45.51

+10.7%

Jan 9 3:59 PM EST

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To: The Duke of URL© who wrote (138783)	7/7/2001 12:52:55 AM
From: COMMON_SENSE	Read Replies (1) of 186894

Totally wrong Depreciation was created as a way to set aside money on a systamatic basis so that you have funds once the useful life of that asset has finished. Think of it like mining coal. You take out of the ground the coal and you deplete the asset of the coal in the ground. Sometime in the future you will have to buy new coal deposits. That is the money that is supposed to be set aside.... The concept of depreciation came with people like John Rockefeller and other natural resource titans in the early century. It has made the rounds and is now an established tool of all corporations. Even Microsoft with all it's intellectual property has a depreciation schedule for that asset. It may be a bit harder to follow - but depreciation is a way of life for corporations. And, by the way, there are many companies that do not want this depreciation writeoff. They lease and they write off the lease or rent instead of outright owning the store and property. The retail market is especially sensitive to ownership of assets. Also look at how airlines finance airplanes.... A sinking fund is a whole different matter and is a different animal.

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