Depreciation allocates the cost of land to expense over the useful life of the land.

Name: Depreciation allocates the cost of land to expense over the useful life of the land.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Land is not subject to depreciation because it is considered to have an indefinite useful life and its value generally appreciates over time. Depreciation is only applicable to assets that have a limited useful life, such as buildings, equipment, and vehicles.

Depreciation Allocates the Cost of Land to Expense Over the Useful