Yes hardware cost is applicable for depreciation.
Dec 20 2012 01:03 PM
Assume a computer costs Rs.1 lakh and you are going to use it for 3 years. Then the vallue of the computer (asset) Rs.1 lakh is capitalized (added)on the balance sheet and added under "equipment" account. Then every year Rs.33,000 is subtracted from this account to depreciate the value of the computer so that in 3 years it becomes 0. Does that make sense?