> Yes, GAAP accounting considers the payment for building the road as purchasing an asset. Cash account goes down, road assets go up. True. > The depreciatio

> Yes, GAAP accounting considers the payment for building the road as purchasing an asset. Cash account goes down, road assets go up. True. > The depreciation expense for using the road accrues to whoever/whatever it is being used for. False. Depreciation happens no matter what. The accountants don't care how it's used. The taxing entity may care if you want to obtain a deduction for the depreciating asset as a cost basis, but that's not an accounting question. > If you allocate roads exclusively for buses, buses need to cover the cost of maintaining the road. No they don't. Ideally, maybe; but that's a political question, not an accounting question.