To appropriately reflect car ownership value and expenses in net worth calculation, the following account rules are adopted:
1) Car value will be depreciated by $175/month in 2003 and $150/month in 2004. Should periodically check edmunds.com and nadaguides.com for latest reference prices. In the case that the reference prices are lower than the balance in the car value account, a special entry should be made to ensure fair net worth calculation.
2) Auto insurance premium will be recognized monthly.
3) A car maintenance fund will be set up. A monthly entry of $50 will be made to accrue necessary maintenance expenses. This fund can be credited when a major car maintenance job (like 30k service) is performed. In the event that accrued expense balance is insufficient to pay for a maintenane job, a special assessment can be made. The account can also be used to pay for deductibles should an auto insurance claim occur. The account cannot be used to pay for jobs less than $100 (like a regular oil change).