Develop a brief answer for each of the following questions:

1. Is carrying value ever the same as market value?

2. What major advantage does a company that has positive free cash flow have over a company that has negative free cash flow?

3. What incentive does a company have to allocate more of a group purchase price to land than to building?

4. Which depreciation method would best reflect the risk of obsolescence from rapid technological changes?
Discussion Questions