Which of the following does depreciation apply to?

Depreciation is a concept that applies specifically to tangible assets that have a finite useful life and can lose value over time due to wear and tear, obsolescence, or age. In real estate, depreciation is generally relevant to structures such as buildings, which are subject to this type of value reduction.

Land, on the other hand, does not depreciate in the same manner because it is considered a non-depreciable asset. Land generally retains its value or may even appreciate over time due to various factors such as location or market demand. Thus, the concept of depreciation does not apply to land.

Regarding income, while the revenue generated from a property may be impacted by factors such as depreciation of the building, depreciation itself does not apply to income obtained from the property. Instead, income is considered as part of an overall financial assessment but not something that depreciates.

Therefore, depreciation applies only to the building, making that answer the most accurate choice in the context of this question.