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To: The Duke of URL© who wrote (124314)1/5/2001 4:07:50 PM
From: ratan lal  Respond to of 186894
 
Cap ex is by definition, NOT DEDUCTIBLE from current earnings, has no effect on current earnings

Only the depreciation affects current earnings. Depreciation starts from day 1.



To: The Duke of URL© who wrote (124314)1/5/2001 4:37:02 PM
From: maui_dude  Respond to of 186894
 
Duke,
"Cap ex is by definition, NOT DEDUCTIBLE from current earnings, has no effect on current earnings and doesn't have anything to do with current earnings. Once the plant is "placed in service or use" some YEARS from now, then it is depreciated, then the depreiation will effect earnings."

Thanks a lot for the info. Bummer, the EPS next year may take a big hit.

Maui.


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