Land is not depreciated because it
A)appreciates in value.
B)does not have an established depreciable life.
C)has a useful life that is limited to the period of time a company is in business.
D)has an unlimited life.

Question

Quizplus · Accepted Answer

Land is not subject to depreciation because it has an unlimited life. Its value may fluctuate over time, but it can't "wear out" or become obsolete like other fixed assets. Therefore, it remains on the balance sheet at its original cost or fair market value, and is not subject to periodic depreciation charges.

Land Is Not Depreciated Because It