Depreciation—Building & Improvements – Ford Online Accounting Manual

Expenses

DEPRECIATION—BUILDING & IMPROVEMENTS	EXPENSE ACCOUNT
	8340/8345/8346

Expense of depreciation of buildings, building improvements, and land improvements used in the automobile business.

			Jrnl.	Dr.	Cr.

Monthly provision for depreciation of building			SE
	Depreciation—Building & Improvements			8340
	Depreciation—Building & Improvements—Service—QL/FL/QCSC			8345
	Depreciation—Building & Improvements—Parts—QL/FL/QCSC			8346
		Accumulated Depreciation—Building & Improvements			1715

Monthly provision for depreciation of parking lot surfacing			SE
	Depreciation—Building & Improvements			8340
	Depreciation—Building & Improvements—Service—QL/FL/QCSC			8345
	Depreciation—Building & Improvements—Parts—QL/FL/QCSC			8346
		Accumulated Depreciation—Land Improvements			1705

Useful lives of buildings and land improvements vary according to type of construction, use and other factors. Guidelines issued by federal tax authorities contain allowable methods and rates of depreciation. Tax counsel should be consulted before adopting depreciation methods and rates.
Depreciation of buildings, building improvements, and land improvements not used in the automobile business should be recorded in Account 9450, Other Deductions.
For departmentalization purposes, depreciation expense applicable to separate buildings occupied by a specific operating department should be charged to these departments. Depreciation applicable to an integrated dealership building should be distributed to departments as provided in Departmentalization.