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of the relative benefit from a cost. Bases of allocation may include square footage, pounds of laundry, meals served, number of employees, number of beds, and other bases. The proponent shall allocate personnel fringe benefits by direct identification of the costs to individual employees or, if this is impossible, by another method. Upon the request of the department, the proponent shall furnish worksheets or schedules, to demonstrate the basis of the allocation of an expense. In its cost allocation basis data, the proponent shall include a description of each allocation basis and an estimate for each basis of the total number of allocation units that will exist during the grant year, and shall estimate the distribution of those units of allocation units among kinds of residential child care facility services and other classifications of expenses described in (3)(B) of this subsection.

(6) A proponent shall, in its treatment of applicable credits, estimate all credits or miscellaneous income items that it will receive during the grant year. The proponent shall specify those expense items and budget categories in its grantee expense summary, and grant project expense details, that were offset or reduced by the amount of each credit or miscellaneous income item. Applicable credits include

(A) purchase discounts;

(B) rebates or allowances;

(C) recoveries or indemnities on losses;

(D) sales of scrap or incidental services;

(E) rental by the grantee of space in its facilities to other persons;

(F) adjustments of erroneous charges;

(G) medicaid reimbursements; and

(H) transportation reimbursements.

(7) A statement of use allowances and depreciation shall include, for each building, land improvement, fixture, piece of equipment and parcel of land that the grantee owns or will own during the grant year,

(A) if donated, the amount of the purchase cost or value of the asset upon donation, plus any capitalized improvements to the asset;

(B) the dollar amount of any part of the cost or value of the asset that was granted, donated, or purchased with a grant or donation by a state, federal or municipal government or agency;

(C) the unpaid principal amount, at the beginning of the grant year, of each loan that was used to purchase the asset and each loan for which the asset is used as collateral;

(D) the total depreciation cost for which the proponent plans to claim reimbursement under the terms of the residential child care facility grant during the grant year;