Tangible Assets and Depreciation

Not all assets are depreciated, though. Knowing this then begs the question, What assets are depreciated With the exception of land, those assets classified as PP E are depreciated. Land improvements, buildings, and equipment are depreciated however, land itself is not. Land does not have a useful life rather, it has an unlimited life, and in many cases, land becomes more useful as less land is available. Land tends to continue to produce revenue for a company. Note that depreciation is used to allocate cost it does not determine an assets value. Eventually, a fully depreciated asset may show a book value of zero dollars but its fair market value, what you could sell the asset for, may be much higher. 

Target Corporation Balance Sheet, Millions (USD ) February 1, 20XX  

Companies have the freedom to choose the depreciation method used to prepare financial statements and which method is used to complete tax obligations. The two methods can be different, so accelerated 

Earnings before interest expense and income taxes 4,229 

---