Why depreciation is not charged on land
Explain why depreciation is not charged on land?
Expert
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.
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
State Net Profit in brief?
Give a short introduction about the term ‘Fixed Overhead Variance’?
State the characteristics of the Composite currency bonds market instrument.
Discuss pricing spill-over effect.
Why host country resist cross-border acquisitions, instead of the green field investments? Explain your point of view?
Write an article why Supplier selection has been a critical decision to be made for any company?
PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h
The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depr
List different types of the international banking offices.
18,76,764
1928085 Asked
3,689
Active Tutors
1460494
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!