The following assets have been acquired by various companies over the past year:
1. Boardroom table and chairs for a corporate head office
2. Dental equipment in a new dental clinic
3. Long-haul trucks for a trucking business
4. Weight and aerobic equipment in a new health club facility
5. Classroom computers in a new community college
Instructions
For each long-lived asset listed above:
(a) Identify the factors to consider in establishing the useful life of the asset.
(b) Recommend the pattern of depreciation that most closely represents the pattern of economic benefits received by the entity that owns the asset.
(c) Discuss how good estimates of asset useful life would help a company manage its assets.