Tangible assets are physical items like machinery, buildings, and inventory. These can be valued using several methods:
Cost Method: This involves recording the asset at its original purchase price. This method is straightforward but may not reflect the asset's current market value. Market Value Method: This method uses current market prices to determine the asset's value, making it more accurate for reflecting current economic conditions. Depreciation Method: Tangible assets lose value over time due to wear and tear. Depreciation methods like straight-line or declining balance can be used to account for this loss in value.