If market value method is used to value non$-$current assets, all assets must be listed at

a$.$ Their appraised values as revealed by the market

b$.$ At the book value

What other items can be included in the original cost besides the purchase price?

Depreciation is the allocation of the cost of

asset over its useful life.

a$.$ Current

b$.$ Non$-$current

Fill in the blanks below.

Book depreciation

Tax depreciation

Goal:

Goal:

Rules:

Rules:

Where recorded:

Where recorded:

Depreciation Expense $($DE$)$ is the allocated portion of the cost of NCA for the period$/$value lost

or used up during the year. Recorded on

Accumulated depreciation $($AD$)$ value lost from the time the asset was placed in service until

the specified point in time. Recorded on

The farm business purchased a non$-$current asset for $$100,000.$ They anticipate using it for $5$

years and do not believe they can re$-$sell it at the end of its useful life. Assume they use a

straight$-$line method to depreciate this asset. Calculate the book depreciation schedule and

provide a completed table below.

See problem $7$ on the next page.