List 3 fixed assets that depreciate annually in a business

Answer 1

Sure, here are three examples of fixed assets that typically depreciate annually in a business:

### 1. Machinery and Equipment
- **Description:** This can include manufacturing machines, workshop tools, and any specialized equipment used in production or other business operations.
- **Depreciation Reason:** Wear and tear, obsolescence due to technological advances, and usage contribute to the reduction in value over time.

### 2. Vehicles
- **Description:** This category encompasses company cars, delivery trucks, forklifts, and any other vehicles used for business purposes.
- **Depreciation Reason:** Daily usage, mileage, and general aging lead to a decrease in the vehicles' value. Additionally, market factors such as newer models and changing consumer preferences can accelerate depreciation.

### 3. Office Furniture and Fixtures
- **Description:** This includes desks, chairs, filing cabinets, lighting fixtures, and other items used within an office environment.
- **Depreciation Reason:** Regular use, changes in office design trends, and physical wear contribute to their declining value over the years.

Depreciating these assets appropriately is crucial for accurate financial reporting and tax purposes. Businesses typically use methods such as straight-line or declining balance depreciation to systematically reduce the book value of these assets over their useful lives.