3. Question 7 One of the reasons that land is not depreciated is: Land has an infinite life. Land is amortized Land does not have a basis like equipment does. Land must use MACRS. 3.4 Question 8 ABC Company had to replace a motor and a condenser in their HVAC unit. The cost of both were substantial. What should ABC do: Capitalized the improvement. Capitalize the improvement because it extended the life of the HVAC unit. Expense the repair. A and B. but not C