RE: Fast400 Value to iSeries community is less than zero -- MIDRANGE-L

Leif, Tom

IANAB (I am not a bean-counter, nor a bean-programmer...;-)

But, IIRC from working in "BigCo", software and hardware are both
depreciated more-or-less the same.  All assets are categorized, depending on
how "hard" the asset is, and they are depreciated along a time-line
depending on that.  I don't recall what the breaks are... 3 years
(doubtful)... 5/10/15/30 years?  There are breaks, that's all I remember.
Land depreciates over the longest term, for example.

I have a vague recollection that hardware depreciates over 5 years, because
I thought that was ridiculous.  (That could easily have changed over the
years, since then, BTW.)  Don't recall if software is in the same category
as hardware, but thinking it might be...

In my business now, I generally fall under some $25,000 exclusion, so most
of what I buy is not depreciated, at all.  I do have, maybe a dozen, assets
that are depreciated.  But, frankly, I've not been interested enough to find
out why they are categorized as assets, instead of expensed.  I could find
out Monday, if it's of great interest to y'all...

HTH

jt

> -----Original Message-----
> From: midrange-l-admin@midrange.com
> [mailto:midrange-l-admin@midrange.com]On Behalf Of Leif Svalgaard
> Sent: Saturday, November 10, 2001 8:39 AM
> To: midrange-l@midrange.com
> Subject: Re: Fast400 Value to iSeries community is less than zero
>
>
> 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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