Question

Which of the following asset is NOT depreciated?

A

Factory Buildings

B

Office Equipment

C

Plant & Machinery

D

Land

Medium
Solution
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Correct option is D)

Land is not depreciated because land is assumed to have an unlimited useful life. Other long-lived assets such as land improvements, buildings, furnishings, equipment, etc. have limited useful lives. Therefore, the costs of those assets must be allocated to those limited accounting periods.

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