Correct option is C. Land Option C is correct. Land, although a fixed asset is never depreciable. It has an unlimited useful life and therefore can not be depreciated. Depreciation is allocation of cost of fixed asset over its useful life. Value of land can not be reduced to zero and it can not be allocated over its useful life.
Land is not depreciated because land is assumed to have an unlimited useful life. Other long-lived assets such as land improvements, buildings, furnishings, equipment, etc. have limited useful lives.
If an entity has determined that it has assets which will not be temporarily used, but that their carrying amount is expected to be recovered through use, such entity must take into consideration that, in accordance with IAS 16 “Property, plant and equipment”, said assets will continue to depreciate, even if these are ...
Current assets, such as accounts receivable and inventory, are not depreciated. Instead, they are assumed to be converted to cash within a short period of time, typically within one year. Financial assets. Most financial assets, such as stocks and bonds, are carried at their current fair value.
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