Exercise 2. a) Describe why "depreciation" is necessary in accrual accounting. b) What do you think about this statement, "I think that this assets has lost more of its Fair Market Value than the Book Value is showing". c) Do accountants just "depreciate" Tangible Fixed Assers? If not, which other assets are "depreciated" and what is depreciation called for those assets? Exercise 3. Complete this grid for the three most popular depreciation methods and which of the three asset classification mentioned in the chapter uses which method