Land & Buldings and their depreciation


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Can someone please shed some light on land and buildings and their respective depreciation if any? Example is land has a factory built on it. Would you treat land and building separately? would you charge depreciation to both? And how would you treat revaluation after 5 years. I know a lot of questions but would really appreciate the help. MANY MANY THANKS ALL!!!!

Saad
 
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kirby

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You treat land and building separately.
Building depreciates. Land does not.
After 5 years land is still at cost. Building is at cost less depreciation, unless some event happened (black mold throughout building) that decreases its value and you need to recognize that.
 

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