Teacher Resources
Fixed Assets and Depreciation
TechStart Solutions is growing and buying long-term assets. How do we track them professionally and choose the right depreciation method?
Duration: 2-3 weeksDifficulty: Intermediate
Driving Question
Sarah Chen's company is expanding and purchasing equipment, vehicles, and technology. Investors expect clean asset tracking and defensible depreciation policies.
How do we track long-term assets professionally and choose the right depreciation method?
Performance Task
This mirrors real-world accounting decisions where companies must choose and justify depreciation methods for financial reporting.
Depreciation Policy Recommendation
Present a depreciation policy recommendation to management, backed by a complete asset register and method comparison analysis.
- Complete asset register with all required fields
- Depreciation schedule comparing at least two methods
- Written recommendation with claim, evidence, and risk analysis
- Clear explanation of method choice and statement impact
Assessment Milestones
Aligned to implemented student lessons
Day 3: Asset Register Complete
MilestoneAll assets entered with cost, useful life, salvage value, and method
- All assets listed with complete information
- Depreciable base calculated correctly for each asset
- Method assigned and justified for each asset class
- Book value calculations verify against cost minus accumulated depreciation
Day 5: Depreciation Schedule and Method Comparison
MilestoneFull depreciation schedule with method comparison and statement impact
- Annual depreciation calculated for each asset
- Accumulated depreciation and book value tracked over time
- At least two methods compared side by side
- Income statement and balance sheet impact explained
Day 7: Final Recommendation and Presentation
MilestoneWritten recommendation and presentation defending depreciation policy
- Clear recommendation statement with method choice
- Evidence cited from asset register and schedule
- Risk and limitation analysis included
- Professional presentation with workbook backup
Lessons (10)
Click a day to open the detailed lesson plan
Day 1
Introduction: Sarah's Fixed-Asset Problem
Launch with Sarah's interview about equipment purchases and investor expectations
45 minutes
Day 2
Capitalization vs. Expense
Classify real purchase receipts as assets or expenses and learn capitalization rules
45 minutes
Day 3
Straight-Line Depreciation
Calculate straight-line depreciation by hand and build a full depreciation schedule
45 minutes
Day 4
Double-Declining Balance and Method Comparison
Calculate DDB depreciation by hand and compare with straight-line
45 minutes
Day 5
Build Asset Register and Depreciation Schedule in Excel
Learn asset register workbook anatomy and build with linked depreciation schedule
45 minutes
Day 6
Method Comparison and Investor-Ready Summary
Compare methods side by side in the workbook and add workbook checks
45 minutes
Day 7
Project Rehearsal with Shared Data
Practice with shared teacher dataset, trace logic chain, peer audit
45 minutes
Day 8
Project Kickoff with Group Datasets
Receive group-specific fixed-asset dataset, set up workbook, begin build
45 minutes
Day 9
Complete Workbook and Recommendation
Finish remaining sheets, write recommendation with claim/evidence/risk, peer critique
45 minutes
Day 10
Final Presentation and Reflection
Present depreciation policy recommendation and reflect on learning
45 minutes
Prerequisite Resources
Files referenced in student lessons
Asset Register Starter Workbookdownload
Depreciation Schedule Templatedownload
Peer Audit Checklistdownload
Definition of Donedownload