Question

Which of the following asset does not depreciate?

A

Machinery and equipment

B

Patents

C

Land

D

Furniture

Easy
Solution
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Correct option is C)

Option C is correct. Land, although a fixed asset is never depreciable. It has an unlimited useful life and therefore can not be depreciated. Depreciation is allocation of cost of fixed asset over its useful life. Value of land can not be reduced to zero and it can not be allocated over its useful life. 

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