Squawk Box
A couple of thoughts for today’s segment, which I may or may not get to:
Here are some examples of what the numbers for the 50% bonus the Accelerated Depreciation rule, scheduled to expire 12/31/04 (and discussed here) look like:
Example: Laptop PC
3 year depreciation schedule
2004 depreciation schedule: Year 1: 67% (50% + 1/2 of 33%)
2005 depreciation schedule: Year 1: 33% (1/3 of the value)
Switching Equipment
5 year depreciation schedule
2004 depreciation schedule: Year 1: 60% (50% + 1/2 of 20%)
2005 depreciation schedule: Year 1: 20% (1/5 of the value)
The key is that in order to qulaify for the 2004 depreciation schedule, the captial equipment must be “Placed in Service” by that 12/31/04 -- not merely ordered, or sitting in a warehouse, but in actual use.
Wednesday, August 04, 2004 | 09:10 AM | Permalink
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Comments
Hey Barry - love your segment on the Chips today on CNBC - we too are starting to get a little Bullish here in Europe on the Chips. Love the statistics about cars being the biggest users of semis. Do you have official numbers regarding Semi usage? Perhaps post it on your blog maybe.
Also another idea we have been playing around with is the idea that the Semis Index is the new Transport Index for the Dow Theory - Strength in Semis ultimately means strenght in the S&P....do have any views on that ????
Posted by: Dan | Aug 4, 2004 9:35:02 AM
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