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Neoliberalism2024 t1_j9f9qa8 wrote

Reply to comment by mikere in FYI for anyone trying to take an Uber/Lyft from LGA on Sunday by RevolutionaryAd5176

Capex is deducted through depreciation of the Capex each year.

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mikere t1_j9fasaq wrote

Quote of the year for /r/accounting

up there with grocery stores taking tax deductions from those charity donations at the register

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Neoliberalism2024 t1_j9fl3p1 wrote

If you’re an accountant, yikes…

https://www.investopedia.com/ask/answers/112814/does-capital-expenditure-capex-immediately-affect-income-statements.asp

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mikere t1_j9fo0sq wrote

> Money spent on CAPEX purchases is not immediately reported on an income statement

literally in the second paragraph

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Neoliberalism2024 t1_j9fts0w wrote

Cool now keep reading where they explain how Capex flows through to depreciation and impacts the income statement, like I said three posts ago.

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mikere t1_j9fvcog wrote

Uber’s capex of 300 million last year results in a whopping $30-40m of annual depreciation assuming a 7-10 year average lifespan and straight line method

Is there any quarter in recent history in which Uber had positive operating income excluding depreciation? I think that would answer the question on whether capex/depreciation is the driver in keeping Uber’s net income negative

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