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Class 12 Tuition > Why there is higher depreciation rate on computers...
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Why there is higher depreciation rate on computers and less on buildings?

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Trainer of SAS, SPSS, R & MS-Excel.

Semiconductors loose their property and start functioning poorly with time. While it takes a very long time for bricks and cement and concrete to start function improperly.
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Subject Accountancy teacher

Rate of depreciation is higher on computers in comparison to buildings due to the following reasons: - i. Computers are electronic goods hence possibility of becoming obsolete is much higher than that of buildings. ii. Hours of use also determines the rate of depreciation. A computer...
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Rate of depreciation is higher on computers in comparison to buildings due to the following reasons: - i. Computers are electronic goods hence possibility of becoming obsolete [loss of usefulness through technological changes] is much higher than that of buildings. ii. Hours of use also determines the rate of depreciation. A computer is used on an average period of 8 to 10 hrs daily hence resulting in higher rate of wear and tear. To account for such higher rate of usage, high rate of depreciation is charged. read less
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Friend Philosopher and E Guide for MCA, class IX-X, Polytechnic Diploma, BCA, BSc, BTech

Because the electronics goods don't last long every moment new things are discovered in electronics which makes the old product backdated. While the older the building better the foundation. No new such discover in civil.
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Btech and PUC tutor

Because of ease of design and manufucaturing considerations, source of raw material demand.
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Expert in SAP Successfactors, SAP HCM and the basics of Knowledge

Because technology is moving fast , so when you buy a phone or a computer with in the next 2-3 months they come up with new stuff but with buildings I think it increases then decreases.
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M.com.

Computers get outdated and obselete. As there are new versions day by day. However building is an asset which always wil carry a better and higher value due to its independence.
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Trainer

Computer is a machine its life decreases as time increases, There is no component of computer whose value increases. But in case of Building the strength of building also decreases as time increases but very slowly comparing computer, secondly the value of land of the building increases as time increases...
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Computer is a machine its life decreases as time increases, There is no component of computer whose value increases. But in case of Building the strength of building also decreases as time increases but very slowly comparing computer, secondly the value of land of the building increases as time increases so the rate of depreciation on computers is more than buildings. read less
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Certified Excel Expert with 6 years of Professional Experience in BFSI

Building have long life than computer .
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Mathematics Faculty

Because no one knows the exact formula to find appreciation and depreciation on any problem!
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I Am Well Qualified and Experienced Tutor

a. Tangible Assets being buildings, machinery, plant or furniture; b. Intangible Assets being knowhow, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature; in respect of which same percentage of depreciations is prescribed.
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