alleryStart learning →For tax depreciation, bare land generally receives?
ANo depreciation deduction
BFull cost write-off
CA 50% yearly deduction
DA 10% yearly deduction
Answer & Solution
Correct answer: A. No depreciation deduction
Land is not consumed, so no depreciation tax deduction is generally allowed on it.
Keep practising Depreciation and Amortisation
Browse all Depreciation and Amortisation questions for CA Foundation, or explore more Accounting topics.
Related questions
How does depreciation expense affect the reported net income?Depletion is most used in which group of industries?Depletion is the using up of natural resources by which activity?Cost depletion allocates the cost of a resource in proportion to what?Pooling of similar assets bought in one year helps tax systems to?Buildings are generally given what depreciable lives under tax systems?A tax system that allows a fixed percentage of cost each year is called?Which cost forms part of the depreciable basis of an asset?