Register now or log in to join your professional community.
Land
Fixture
Plant
Equipment
Option1. Land is the right answer.
The IRS and financial accounting rules do not allow land depreciation. However, you may write down, or reduce, the value of land if you believe environmental or regulatory conditions have adversely affected the property's worth. For instance, if you own land in an earthquake-affected area, you may conduct an impairment test and write down the land's worth. So, Option A is correct one,
Land is the correct Answer. It doesn't depreciate.
correct answer is land which is not depreciated
Land.........................
Land is an asset which is not Depreciated.
land is the asset which never depreciate. it always appreciate.
The answer is Land : Land is not depreciable asset because the life of the asset cannot be determined..Depreciation can be charged on land if it has limited useful life. So you have to first prove that there is limited useful life for land and claim depreciation.
Land is the only asset that is not depreciated. Economics teaches us that land is a scarce resource. Therefore, land is not depreciated as demand will always outstrip supply. Depreciation is charged so that the true value of the asset is reflected. Assets that are prone to fall in value due to obsolescence, war and tear etc are depreciated. Land has no such limitations.
