## Fixed Assets Budget - Part 5

Part 5  - Determine the Forecasted Current Market Value of each Fixed Asset Category

The Forecasted Current Market Value refers to the estimated worth of your fixed assets on the last day of each forecasted business year (IE your year end). Therefore, Murray must determine the estimated value of his fixed assets on December 31, 200X and on December 31, 200Y. To do this, simply subtract each category's accumulated deprecation from the cost of each fixed asset (or appraised values, if any).

 Fixed Asset Category 200X 200Y Automobile \$6,000 \$6,000 Less: Accumulated Depreciation - Auto \$1,000 \$3,000 Market Value of the Auto \$5,000 \$3,000

As you can see, the market value of the automobile on December 31, 200X is estimated to be \$5,000. The market value of the automobile on December 31, 200Y is estimated to be \$3,000 (IE \$1,000 depreciation expense for 200X + \$2,000 deprecation expense for 200Y = \$3,000). The above calculations will appear under the Fixed Asset Section of Murray's 200X and 200Y Forecasted Balance Sheet.

 Fixed Asset Category 200X 200Y Office Equipment \$8,400 \$9,600 Less: Accumulated Depreciation - equipment \$1,400 \$4,600 Market Value of the office equipment \$7,000 \$5,000

As you can see, the market value of the office equipment on December 31, 200X is estimated to be \$7,000. The market value of the automobile on December 31, 200Y is estimated to be \$5,000. The above calculations will appear under the Fixed Asset section of Murray's 200X and 200Y Forecasted Balance Sheet.

Categories: Forecasting