Question

the following asset is not a depreciable asset
a) land
b) mines
c) machinery
d)motor vehicles

Answer 1

Answer:

B) part

(mines is the answer)

Answer 2

The land is not a depreciable asset. (Option a)

• Tangible assets have a limited useful life and their value starts to decrease as and when they are used for operations.
• Assets like motor vehicles, machinery, mines, etc. lose value over the years as they are utilized and bear wear and tear.
• But the value of land does not depreciate and its value keeps on increasing with time.
• The land is supposed to have an unlimited useful life.