Property Valuation
The 'remaining economic life' of a Connecticut building is estimated as:
AThe total physical life of the building
BThe number of years the building is expected to continue contributing positively to the property value✓ Correct
CThe years since the building was constructed
DThe depreciation period allowed by GAAP
Explanation
Remaining economic life is the estimated period during which the existing improvements will continue to contribute positively to total property value—beyond which the land value may exceed the improved property value.
Related Connecticut Property Valuation Questions
- A Connecticut appraiser identifies a property's highest and best use as residential development. However, the property currently has a commercial building. This means:
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