Sarah's Equipment Purchase — Why Long-Term Assets Are Different
Lesson 01 launches the fixed-asset problem by showing Sarah facing a real equipment purchase decision. Students see why long-term assets cannot be treated like regular expenses, learn the core scoreboard (cost, accumulated depreciation, book value), and feel the tension between spending money now and tracking value over time. No formulas or workbook builds yet — just the problem that makes depreciation necessary.
- ▶Explain why long-term asset costs are not treated like everyday expenses
- ▶Identify the three parts of the depreciation scoreboard: cost, accumulated depreciation, and book value
- ▶Predict how a major equipment purchase affects a business over time
- ▶Connect professional asset tracking to investor credibility
This lesson follows a structured 6-phase learning model designed for authentic project-based learning.
Hook
Sarah's interview: TechStart is expanding and needs new equipment. Why can't she just expense it?
Introduction
Name the scoreboard: cost, accumulated depreciation, and book value. Scan the system.
Guided Practice
Predict what happens to book value over time before the formal reveal.
Independent Practice
Make 1-2 choices about how to track an asset purchase and see the consequences.
Assessment
Short MCQ exit ticket on the founder problem, scoreboard, and core distinctions.
Closing
Restate Book Value = Cost - Accumulated Depreciation. Preview capitalization and depreciation logic.