Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

Question

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Depreciation expense for shared assets should be allocated to functions on an appropriate basis (for example, square footage of building use); however, depreciation expense for assets that essentially benefit all functions may be reported as a separate line item or on the same line as the General Government or similar function.

Depreciation Expense for Assets That Essentially Benefit All Functions,such as the City