what is depreciation and %s of some product does land get depriciated journal entries

Question

Accepted Answer

Depreciation is the allocation of the cost of a tangible asset over its useful life. Land does not depreciate.

Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.
It is calculated using methods such as straight-line, double declining balance, or units of production.
Land is not depreciated because it is considered to have an indefinite useful life.
Journal entries for depreciation involve debiting Depreciation Expense and crediting Accumulated Depreciation.
Example: If a company purchases equipment for $10,000 with a 5-year useful life, the annual depreciation expense would be $2,000 ($10,000 / 5 years).

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