the houstonian hotel club amp spa welcomes 86 000 guests per year and has a member l 691633

The Houstonian Hotel, Club & Spa welcomes 86,000 guests per year and has a member list of about 10,000. It also hosts meetings and interviews for President George W. Bush. Therefore, anything that is done at the Houstonian is always first class. However, with buildings that depreciate, renovations and upkeeps, and building a new spa, how does the Houstonian deal with the issue of depreciation? Mr. Al Gallo explains: “We capitalize our assets and break them out in terms of hard construction costs, soft costs—or those costs associated with architectural fees, project managers and consultants, also furniture fixtures and equipment—and finally we categorize separately our computer equipment and security and surveillance equipment. Each category listed above has a unique life established. We would employ MACRS [Modified Accelerated Cost Recovery System] for tax and simple depreciation for book as well. After the project is finished, we would move the ‘work in progress’ amounts into the ‘fixed assets’ and depreciate them monthly in order to properly match revenues and expenses