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From: <thomas@inorbit.com> On Thu, 08 November 2001, "Leif Svalgaard" wrote: ==> does hardware and software depreciate at the same rate? Interesting question; I certainly don't know. I bought two AS/400 model 400s, one with V3R6, the other with V3R7. One now runs V4R5 and the other V5R1. I have no clear idea how to calculate the relative values had the software never been upgraded but simply allowed to "depreciate" -- assuming it's possible. I suspect the term doesn't apply to software, but it's a pure guess. I'd expect it to be some kind of an amortized expense more likely, but even that seems improbable. ===> what I meant was that if a business buys a piece of equipment (hardware) it can depreciate the cost over a number of years (for tax purposes). I presume that the same is true for software, but I don't know if the rate is the same. That was my question. It was all in response to your question if it made any difference if a solution was hardware or software.
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