Property Valuation
A property has a chronological age of 20 years and a total economic life of 50 years. Using the age-life method, what is the depreciation rate?
A20%
B30%
C40%✓ Correct
D50%
Explanation
Depreciation rate = Effective (chronological) age ÷ Total economic life × 100 = 20 ÷ 50 × 100 = 40%. This means the building has depreciated 40% from its original cost-new.
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