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Discussion

01/09/2020 Client: lyjly0515 Deadline: 24 Hours

Fixed Asset Discussion:



  1. Identify a type of company in your pathway that might purchase fixed assets (see suggestions below).

  2. List 5 fixed assets that they might purchase to run their business.

  3. Select one depreciable fixed asset.  Based on research suggest what the cost, residual value and estimated life might be for that fixed asset.

  4. Using your assumptions above, calculate:

    1. Straight-line depreciation and book value for each of the first two years

    2. Declining Balance depreciation and book value for each of the first two years

    3. Units of Production depreciation (make assumptions about the first two year’s use), and book value for each of the first two years. 



  5. Suggest which depreciation method might be more appropriate and why.


Examples of sectors/industries in pathways could be:



  • AHCD: Media, Dance, Theater, Film production, Graphics design or Architecture

  • Business:  Tourism/Leisure, Telecommunications, Retailers, Computers, Equipment, Food and Beverage Products, Real Estate, Technology Hardware, Toys, Commercial Services, Financial Services, any business is acceptable

  • Education:  Non-Profit Services, Public Agency, Child care, Charter schools, Universities

  • Health Sciences:  Health Care Services, Healthcare Products, Hospital, Household Products, Chemicals

  • IMCT:  Aviation, Construction, Construction Materials, Logistics, Automotive, Mining

  • Public Safety:   Equipment providers for the industry, Public Agency, Non-Profit Services

  • STEM:  Engineering, Computers. Chemicals, Energy, Energy Utilities, Technology Hardware

  • SGSHS:  Healthcare Services, Non-Profit Services, Media, Public Agency

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