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View Full Version : Calculating depreciation of assets

paulc
03-13-2009, 04:10 PM
This is a bit of a long shot, but I hope someone here can help..... (if this is the wrong section please move or delete).

To cut a long story short, I am being offered payment for work that I have done previously in the assets of a company instead of cash (yep another victim of the recession)

They have given me a list of their machines/assets, but the value given is the list price as if they were new. Does anyone know how to calculate the rate of depreciation for PC/Macs, ( I've found a few sites on the web explaining the process) but there anything specific about how computer hardware depreciates......e.g. How long is the lifespan of a computer, before it needs replacing......

Hope you can help.

PaulC
dmeyer
03-13-2009, 04:17 PM
In a tax situation its generally depreciated based on the estimated usable life of the machine, or the time in service. 3 years is a standard.

However, if i was accepting them in lieu of currency I would find the current market value via ebay or other means.
imashination
03-13-2009, 04:56 PM
I would check ebay for similarly specced machines and then knock a chunk off, absolutely dont accept the new prices as their values.
olson
03-13-2009, 05:18 PM
Looking up used equipment values is a good idea but if the equipment is very specific and a reference price isn't available count on equipment losing half its value every 12-18 months for computing equipment (computer system itself, components, processors, memory, etc.). Other things like cameras and monitors will hold their value for longer. Cheers!
paulc
03-16-2009, 10:18 AM
many thanks for the repliess guys. I'd tried looking for similar prices on ebay etc, but these some of these products are custom built workstations, so not too many come up. Olson, that kind of info iss just what I was after and will be most useful when negotioating the true value of the PC's etc.

Again Many thanks.

PaulC
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03-16-2009, 10:18 AM
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