While the remarks already made apply to buildings on freehold lands, it is evident that they apply with even greater force to leasehold properties. Whether the leases are long or short, the sum of the charges, (1) premium, if any, paid for the lease, and (2) cost of buildings erected which revert to the owner of the fee at the expiration of the lease, may be treated as an asset at the beginning of the lease, and should be reduced by equal periodic amounts so that they disappear when the lease ends. In this case, unlike that of freehold property, the value of the lease appearing on the books is reduced on the face of the ledger.

The question of depreciation has been discussed fully and clearly by eminent writers both in England and in this country, and the reader is referred to these authors should he desire to pursue the subject further.*

*"Auditing," by Lawrence R. Dicksee; "Auditors, Their Duties and Responsibilities," by Francis W. Pixley; "Accounts, Their Construction and Interpretation," by William Morse Cole; "Modern Accounting," by H. R. Hatfield; "Auditing, Theory and Practice," by Robert H. Montgomery; "Principles of Depreciation," by Earl A. Saliers.