The following asset is subject to the least amount of depreciation or amortization during its useful life:
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A. B. C. D.Explanation
Land is not subject to any depreciation. The useful life of land does not diminish over time as its economic value does not diminish based on use.
The asset subject to the least amount of depreciation or amortization during its useful life is A. land.
Land is generally considered a non-depreciable asset because its value is expected to remain relatively stable or appreciate over time. Unlike other assets, such as buildings or machinery, land does not have a finite useful life or wear out through ordinary use. It is considered a permanent asset.
Depreciation and amortization are accounting methods used to allocate the cost of an asset over its useful life. They are applied to assets that are expected to experience wear and tear, obsolescence, or a reduction in value over time. However, land does not exhibit these characteristics and is not subject to depreciation.
Land is typically valued based on its location, size, and potential uses. Its value may increase due to factors such as population growth, economic development, or zoning changes. While there may be fluctuations in land value over time, these are often driven by external factors and market dynamics rather than the asset's intrinsic wear and tear.
In summary, land is not subject to depreciation or amortization because it is considered a permanent asset with a stable or appreciating value over time.