The correct answer is: D. Patent
Depreciation is the systematic allocation of the cost of an asset over its useful life. It is a non-cash expense that is used to account for the decline in the value of an asset over time.
The following assets are eligible for depreciation:
- Tangible assets are physical assets that have a useful life of more than one year. Examples of tangible assets include buildings, equipment, and furniture.
- Intangible assets are non-physical assets that have a useful life of more than one year. Examples of intangible assets include patents, trademarks, and copyrights.
Animals are not eligible for depreciation because they are not considered to be assets. Tea plants are also not eligible for depreciation because they are considered to be biological assets. Goodwill of a business is also not eligible for depreciation because it is an intangible asset that does not have a determinable useful life.
Patents are eligible for depreciation because they are considered to be intangible assets that have a determinable useful life. The useful life of a patent is typically the length of time that the patent is protected by law.