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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Colin Campbell who wrote (32853)	3/8/1998 12:36:00 AM
From: Paul Reuben	Respond to of 176387

"a) Companies. If you buy a computer it counts as an asset on your balance sheet. you can depreciate it at 20% per year. Thus it takes 5 years to write off the cost of that computer as a business expense. What does this mean. It is cheaper to buy a higher priced computer that may have a lifespan of 5 years than a $1000 PC that lasts for 1 year." I believe it would all depend on what a company's depreciation policy is, actually. I've seen many companies that capitalize only items (e.g. computers) that cost $1,500 or more. Just my two cents (which I will expense rather than capitalize<g>). Regards, Paul