Property Valuation

Economic life in Indiana appraisal refers to:

AThe physical age of the building
BThe period over which a property improvement contributes positively to property value✓ Correct
CThe depreciable life allowed by the IRS
DThe time until the building must be demolished

Explanation

Economic life is the period during which an improvement contributes positively to the total property value. It may be shorter than physical life if the improvement becomes economically obsolete before it physically deteriorates.

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