Which of the following asset does not depreciate?

Machinery and equipment

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Patents

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Land

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Furniture

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Solution

The 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.

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Which of the following statements does not help to describe a fixed asset?

The expenditure which does not result in the creation of assets is treated as

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