356 – Leaseholds – Accumulated Depreciation

Fixed Assets

 

Synopsis

Account 356

Debits

Credits

  1. The accumulated depreciation on leaseholds and improvements upon sale, disposal, or lease termination.

  1. The monthly provision for depreciation on all leaseholds and improvements.

 

 

Remarks:

It is recommended that the dealer obtain accounting and tax counsel in establishing proper accounting and depreciation of leaseholds.

 

This account balance represents the total accumulated depreciation of leaseholds and improvements recorded in Leaseholds (Account 286).

 

Leasehold improvements should be depreciated over the expected life of the improvement, or the remaining period of the lease, whichever is less.

 

A premium paid for a lease should be depreciated over the term of the lease.

Note: