Free Sample Letters - Business Transactions - Errors - Pointing Out Other's - Example 3

Memorandum

TO:                 

FROM:           

DATE:            

SUBJECT:       Leasehold Improvements—Account 468

Thanks for your memo on the Cedarpoint account (#468); I do understand your reasoning behind expending the costs for remodeling the headquarters office.

In my opinion, however, these expenditures should be accounted for as leasehold improvements. Here’s my reasoning:

1.   The improvement’s useful life exceeds one year.

2.   Generally accepted practice is to capitalize and depreciate these improvements over the remaining term of the lease.

I’d like to give this further thought and talk to Ed Weese before I ask you to make definite changes. If I’m wrong, let me assure you, it won’t be the first time.