Which of the following is NOT classified as depreciable property?

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Inventory is not classified as depreciable property because it is considered a current asset that is meant for sale during the normal course of business. Depreciation applies to long-term assets that provide benefits over multiple accounting periods, whereas inventory is typically sold and converted into cash or revenue within a single operating cycle. The classification of inventory as a non-depreciable asset is essential for accurate financial reporting and tax purposes.

In contrast, rental houses, industrial assets, and investment properties are all types of real or personal property that are subject to wear and tear, obsolescence, or decline in value over time. They are utilized to generate income or support business operations, and thus, they can be depreciated over their useful lives according to IRS guidelines. This depreciation allows property owners to recover the costs of the property over time, impacting taxable income.

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