Because Land Has Unlimited Life,it Is Not Subject to Depreciation

question 174

True/False

Because land has unlimited life,it is not subject to depreciation.Therefore,items that increase the usefulness of the land such as parking lots are also not depreciated.

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Definitions:

Equity

The worth of an owner's stake in a property or business once all debts and other financial obligations have been subtracted.

Expense

An outflow of money or other resources, often categorized as operational or capital, incurred by a business in the process of earning revenue.

Room Rental Revenue

Income generated from the leasing or renting out of rooms, commonly seen in hotels, hostels, or rental properties.

Event Revenue

Income generated from organized events, such as concerts, conferences, or sports events, typically through ticket sales, sponsorships, and merchandise.