What type of asset is primarily subject to depreciation over time?

The correct choice is plant asset, which is primarily subject to depreciation over time. Plant assets, also known as fixed assets, include tangible long-term resources such as buildings, machinery, equipment, and vehicles used in the production of goods and services. These assets have a finite useful life and are expected to provide economic benefits over that period. As such, their cost is allocated over their useful lives using depreciation, which systematically reduces the value of the asset on the balance sheet in a manner that reflects its consumption, wear and tear, or obsolescence.

In contrast, intangible assets, which might include patents or copyrights, are amortized rather than depreciated, since they do not have a physical presence. Financial assets, such as stocks and bonds, are typically subject to changes in market value rather than systematic depreciation. Current assets, like inventory and accounts receivable, are expected to be converted into cash or consumed within one year and are not depreciated. Thus, plant assets are distinctly characterized by their depreciation over time due to their physical nature and the impact of usage on their value.