October 30, 2016 admin

Land Improvements—Accumulated Depreciation

Assets

LAND IMPROVEMENTS—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1705

ACCOUNT EXPLANATION
Accumulated depreciation of land improvements.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation of land improvements SE
    Depreciation—Land & Buildings 8340
      Accumulated Depreciation—Land Improvements 1705
             
  Sale of land and improvements for cash at a loss CR
    Cash in Bank—General 1001
    Accumulated Depreciation—Land Improvements 1705
    Gain or Loss—Sale of Fixed Assets & Securities 9250
      Land (Auto business Only) 1700
      Land Improvements     1701
COMMENTS
  • Subsidiary fixed asset depreciation records should support this account.
  • Rates of depreciation vary according to type of improvement, use, and other factors. Guidelines issued by federal tax authorities contain suggested rates of depreciation for various items. Tax counsel should be consulted before adopting depreciation methods and rates.