Which Statement Is True About Land

question 78

Multiple Choice

Which statement is true about land?

• A)Land should be depreciated over the same period as the building located on it.
• B)Land cannot be depreciated for greater than a 40-year period.
• C)Land should not be depreciated.
• D)The straight-line method should be used to depreciate land.

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Definitions:

Properly Drawn

Pertains to documents or legal instruments that are prepared and executed correctly and according to all requisite legal standards.

Sufficient Funds

The availability of enough money in an account to cover checks or withdrawals.

Honor

The act of fulfilling or adhering to an agreement, contract, or request, demonstrating integrity and respect.

Postdated Check

A check written with a date in the future, which cannot be cashed or deposited until that date.