23 June 2011
Dear Sir, We have purchased land and building for Rs.120lakhs in that land costing Rs.100lakhs and building Rs.20lakh, my question is how to calculate depreciation. whether we have to include land cost in calculation of depreciation.
24 June 2011
Hi, dep can be provided when there is a limit on useful life of the asset. In case of land, since its life is unlimited, dep can not be provided. Hence depreciate building only. Regards, CA Shakuntala Chhanagni
CAclubindia
