Which of the following assets is not required to be depreciated/amortised?LandMachineryTrademarksMotor vehicles
Question
Which of the following assets is not required to be depreciated/amortised?LandMachineryTrademarksMotor vehicles
Solution
Land is not required to be depreciated/amortised.
Depreciation and amortisation are methods of allocating the cost of an asset over its useful life. However, land is considered to have an indefinite useful life and does not wear out or get used up like machinery, motor vehicles, or intangible assets like trademarks. Therefore, it is not depreciated or amortised.
Instead, land is recorded at its cost and remains at that amount until it is sold or disposed of. Any gains or losses from the sale of land are recorded in the period they occur.
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