Leasehold improvements are subject to depreciation because they have a limited life.

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Leasehold improvements are additions or alterations made to a leased property to make it more functional or attractive. They have a limited useful life and therefore are subject to depreciation, similar to other types of tangible assets. Depreciation is the allocation of the cost of the leasehold improvements over their estimated useful life, and it is a way to reflect the reduction in the asset's value as it is used over time. Therefore, leasehold improvements are subject to depreciation.

Leasehold Improvements Are Subject to Depreciation Because They Have a Limited