Property Valuation
Which of the following is an example of physical (curable) depreciation?
AAn outdated kitchen layout that cannot be economically modified
BDeferred maintenance such as peeling paint or a broken gutter✓ Correct
CDecline in value due to nearby industrial development
DAn unusual architectural design that appeals to few buyers
Explanation
Physical curable depreciation refers to items of deferred maintenance (like peeling paint or a broken gutter) where the cost to repair is less than the resulting increase in value. They are 'curable' because repairing them adds value equal to or greater than the repair cost.
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