Math for Business Operations

Applied Accounting with Excel

UNIT08 - Lesson 1

Introduction: Sarah's Fixed-Asset Problem

45 minutes
Lesson Overview

Lesson Focus

Launch with Sarah's interview about equipment purchases and investor expectations

Key Unit Objectives

Enduring Understandings:

  • Long-term assets are tracked differently from everyday expenses because they provide value over multiple periods
  • Depreciation method choice affects reported profits, tax obligations, and asset book values over time
  • Professional asset tracking requires organized registers with cost, useful life, salvage value, and method documentation
  • The depreciation decision has real consequences for financial statement presentation and business decision-making

Lesson Activities

Activity 1: Sarah's Interview: Equipment Purchase Challenge
15 minutes

Watch Sarah's interview about TechStart Solutions buying long-term assets

Details:

  • Sarah explains her company is growing and purchasing equipment, vehicles, and technology
  • Investors expect clean asset tracking and defensible depreciation policies
  • Discussion: Why do long-term assets need different tracking than everyday expenses?
  • Introduction of the scoreboard: Cost, Accumulated Depreciation, Book Value
Why Fixed Assets Are Different

Long-term assets provide value over many years, so their cost is spread out

  • A $50,000 vehicle isn't expensed all at once — it's depreciated over its useful life
  • Depreciation matches the asset's cost to the periods it helps generate revenue
  • Investors scrutinize depreciation policies for consistency and reasonableness
  • Method choice affects reported profits and tax obligations every year
Activity 2: Fixed-Asset Scenario Cards
15 minutes

Teams analyze real-world purchase scenarios and classify as assets or expenses

Details:

  • Review scenario cards with various purchases (laptop, printer paper, delivery van, office rent)
  • Teams classify each as capital expenditure or everyday expense with justification
  • Discuss borderline cases and the reasoning behind classification decisions
  • Connect to essential question: How do we track these professionally?
Activity 3: Scoreboard Introduction
10 minutes

Introduce the three key numbers for every fixed asset

Details:

  • Cost: What we paid to acquire the asset
  • Accumulated Depreciation: Total depreciation recorded so far
  • Book Value: Cost minus Accumulated Depreciation
  • Practice: Calculate book value for sample assets
Activity 4: Challenge Framing & Preview
5 minutes

Set expectations and preview learning journey

Details:

  • Review unit timeline and major milestones
  • Preview final deliverable: depreciation policy recommendation
  • Establish learning objectives and success criteria
  • Address student questions about expectations and assessments
Required Materials
  • Sarah interview video or case brief
  • Fixed-asset scenario cards
  • Scoreboard reference sheet
  • Unit overview and milestone timeline
Differentiation Strategies

For Struggling Students

  • • Scaffolded asset register with pre-filled asset descriptions
  • • Formula templates for depreciation calculations
  • • Step-by-step build guide with screenshots
  • • Peer mentoring partnerships with advanced students
  • • Reduced asset count while maintaining authentic business context

For Advanced Students

  • • Extension challenge: Add partial-year depreciation logic
  • • Compare three or more depreciation methods
  • • Leadership roles: Mentor teammates and facilitate peer critique
  • • Deep dive: Tax vs. book depreciation differences
  • • Research MACRS depreciation and its real-world application

For English Language Learners

  • • Depreciation terminology glossary with visual aids
  • • Key formulas explained in plain language with examples
  • • Recommendation templates with language scaffolding
  • • Visual depreciation schedule examples
  • • Partner with fluent English speakers for presentation preparation