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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 239.26

-1.0%

Jan 30 3:59 PM EST

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To: yard_man who wrote (146368)	8/27/2002 6:14:33 PM
From: Oeconomicus	Read Replies (1) of 164685

I have a product that might be good for 5 yrs that I use on a daily basis -- but I pay yearly -- it's an expense, IMNAO. (that's non-account Opinion). I think it is silly to depreciate the stuff tippet, no offense, but that's silly. Would you say that a company that buys a $100,000 machine that they expect to use for five years should expense it in the first year just because they have to pay to maintain it each year? Of course, if you are essentially renting the software - i.e. if you don't pay the next rental payment you lose the right to use it at all - then you don't have a capital asset. It's the same as if you rent a truck for your business. OTOH, if you pay annual maintenance for support and upgrades, but you own the original licensed copy and can continue to use it without continuing the support contract, then you clearly have a capital asset (and ongoing maintenence expense). Now, if you are talking about some $39.95 virus software where you pay each year for the right to download updates, then I doubt anyone would argue against expensing it from the beginning, but Lizzie was talking about significantly bigger tickets. IMNAO, Bob

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