Real Estate
Component Depreciation — HVAC System
Monthly depreciation on the building's central air conditioning system as a separate component.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Depreciation Expense (HVAC) | Expense (+) | 1,667.00 | - |
| Accumulated Depreciation (HVAC) | Contra-Asset (+) | - | 1,667.00 |
💡 Accountant's Note
HVAC systems have a shorter useful life (typically 10-15 years) than the building structure (40-50 years). Component accounting ensures each part is depreciated at the correct rate.
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