Question

Any addition or extension to asset must be ________ its useful life of that asset.

• A. Depreciated
• B. Appreciated
• C. Ignored
• D. Separated

Answer 1

Answer: (A)

Depreciated

Option A is the Correct one.

Depreciation is must on every Fixed assets and on its addition or extension

for that there are three basic condition.
1.The Assets must be Fixed Tangible Assets
2.The Assets must be used for Business Purpose

3.The must have limited life

Note :- Land has not limited or specific life therefore we can't calculate depreciation on Land.