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# Fixed Asset Discussion: Identify a type of company in your pathway that might purchase fixed assets...

## Question

###### Fixed Asset Discussion: Identify a type of company in your pathway that might purchase fixed assets...

Fixed Asset Discussion: Identify a type of company in your pathway that might purchase fixed assets (see suggestions below). List 5 fixed assets that they might purchase to run their business. Select one depreciable fixed asset. Based on research suggest what the cost, residual value and estimated life might be for that fixed asset. Using your assumptions above, calculate: Straight-line depreciation and book value for each of the first two years Declining Balance depreciation and book value for each of the first two years Units of Production depreciation (make assumptions about the first two year’s use), and book value for each of the first two years. Suggest which depreciation method might be more appropriate and why.

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