Brisbane Ltd purchased a property 10 years ago for $3 000 000. Included in this amount is $350 000 that relates to buildings constructed on the land. A recent valuation has shown that the property is now valued at $5 400 000. The valuer has suggested that the location of the property and the quality of the soil are such that it is unlikely that the value will ever drop below the initial cost of acquisition. The buildings on the property are of a general nature.

REQUIRED

Describe the appropriate depreciation treatment.