Question

Which of the following assets never loses its ability to provide service and, as a result, does not need to be depreciated? a. Office equipment b. A patent c. Land d. A copyright

Answer 1

Land is the asset that never loses its ability to provide service and does not need to be depreciated, unlike office equipment, patents, and copyrights which have limited useful lives.

Step-by-step explanation:

The asset that never loses its ability to provide service and, as a result, does not need to be depreciated is land. As opposed to assets like office equipment, a patent, or a copyright, which may lose their value over time or have a finite useful life, land is considered to have an indefinite lifespan and hence, traditionally it is not subjected to depreciation in accounting practices.

Patents and copyrights do provide service for a limited period as they are part of intellectual property rights which include an exclusive legal right to use for a specific duration. A patent usually lasts for 20 years from the date of filing and copyrights protect an author's works for the life of the author plus 70 years.