--%>
Assignment Help - homework help

Why depreciation is not charged on land

Explain why depreciation is not charged on land?

E

Expert

Verified

The land doesn’t get depreciated. The cause being that the depreciation is assumed to be the reduction in the value of an asset since of:

i) Usage, 
ii) Extraction, 
iii) Obsolescence and so on.

Either the capital asset is employed and can no more give as much level of output or a few asset from which minerals, coal and so on are extracted are getting exhausted or a few technology and so on are getting obsolete therefore they are depreciated.

The land is not subject to either of the stuff. The market value of the land might go down since of seasonal reasons, however land can’t get depreciated.

   Related Questions in Financial Accounting

  • Q : Foreign subsidiary- financial structure

    State some of the conditions under which the foreign subsidiary’s financial structure become relevant?

    		•
  • Q : Maximum factors Explain the Maximum

    Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?

    		•
  • Q : NPV capital budgeting framework Specify

    Specify intuition behind NPV capital budgeting framework?

    		•
  • Q : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

    		•
  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•
  • Q : Benchmarking A way to improve

    A way to improve performance that investigates the way several different entities do the same activity and finds the best way to accomplish the activity. The best ways then become the standard or the benchmark for all the entities.

    		•
  • Q : Guidelines for effective communication

    Define and explain the four guidelines for effective communication in families. Give examples to describe each guideline.

    		•
  • Q : Matlab Applications in Control System

    Student faces a lot of difficulties in Matlab control system assignments and topics. If you are also having same issues and problems then www.tutorsglobe.com is the best available solution for you. We have highly skilled and experienced tu

    		•
  • Q : Why depreciation is not charged on land

    Explain why depreciation is not charged on land?

    		•
  • Q : Why farmers were angry at Railroad

    Why were farmers angry at the Railroad companies?

    		•