This article pertains to the valuation of tangible personal property for purchase price allocations. General service methodology overview There are a number of service levels potentially applicable to the valuation of tangible personal property utilizing the existing fixed asset file. Each of these service levels have differing benefits and advantages. Generally addressing the matter, information concerning these approaches follows: 1. Gross Adjustment to Asset Classification Totals In this approach each of the asset classifications is adjusted on an overall basis through use of a table based on age and value adjustment factors. The obvious advantage is a low fee, however the disadvantage is each asset is not adjusted to the proper value. Macro industry factors are utilized. 2. Adjust Existing Fixed Asset Record with a Single Age / Factor Table In this approach the existing fixed asset file, on an asset by asset basis is adjusted using a single age / factor table.  The advantage is that the fee is relatively low, however the assets do not properly reflect value. After a few years the data file is essentially of no use except as an accounting tool. Again, macro industry factors are utilized. 3. Adjust Existing Fixed Asset Record with Differing Factors Applied Based on Age to Various Accounting Asset Classes This approach has a higher cost than the previous approaches. However, the assets are often incorrectly classed for appraisal adjustment. The resulting data file is more accurate than approaches #1 and #2. Macro and partial micro factors are utilized. 4. Adjust Existing Fixed Asset Record Based on Appraisal Classifications and Appraisal Age / Factors In this approach a separate field is structured to classify the assets in an appraisal classification manner with the factors applied on an age basis. Under this approach the new asset record will more reasonably reflect the Market Value of the assets. Direct market research is used to develop appropriate age / life factors. Appraisal micro factors are utilized. 5. Adjust Existing Fixed Asset Record Based on Appraisal Classifications and Appraisal Age / Factors, with Direct Valuation of Major Assets with a Fair Market Value in Continued Use of over, say $5,000 This approach is the same as approach #4 above, except that the major assets are directly valued. By using this approach the fixed asset record most accurately reflects the Fair Market Value in Continued Use. To gain greater accuracy the specific asset valuation cutoff threshold ($5,000) is lowered as deemed appropriate. Additional Considerations • List assets that are capitalized or operating leases and revalue the former. • Clean record of assets no longer in existence, adjust as appropriate some assets. • Write down software, as appropriate. • Age assets consistent with methodology chosen. • Reclassify assets, as appropriate. • Calculate and apply economic obsolescence if warranted by financial analysis.