WRITING EXERCISE ––– Business Entity and Cost Concept
Ask students to write an answer to the following questions
1. Sally Vertrees purchased a personal computer for use at home. Sally owns a dental
practice. She occasionally uses the computer for a task related to her dental
practice; however, the computer is used primarily by Sally's children. Can the
computer be recorded as an asset in the accounting records of Sally's dental
office? Why or why not?
2. Jason Thompson purchased an office building 10 years ago for $780,000. The
building was just appraised at $1.25 million. What value should be used for the
building in Jason's accounting records? Support your answer.