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Explain what is meant by value neutrality.
Land
A fixed asset representing the ownership of physical real estate or ground, not depreciated over time in accounting practices.
Machinery and Equipment
These are tangible assets used in the operations of a business, often involved in the manufacturing, production, or service delivery processes.
Land Improvements
Enhancements made to a parcel of land to increase its value or usability, such as landscaping, fencing, and installation of utilities, which are usually depreciable over their useful life.
Buildings
Structures erected to serve as premises for business, residential, or other purposes, considered as fixed assets on a balance sheet.
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