Property Valuation

An appraiser uses the 'age-life' method of depreciation calculation. For a building with a 60-year economic life that is currently 15 years old (effective age), the percentage of depreciation is:

A15%
B25%✓ Correct
C30%
D60%

Explanation

Age-life depreciation rate = Effective age ÷ Total economic life. 15 ÷ 60 = 0.

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