Property Valuation
A Kentucky appraiser estimates physical depreciation for a 15-year-old building by dividing the building's age by its expected economic life. This method is called:
AObserved condition method
BAge-life method✓ Correct
CExtraction method
DSales comparison method
Explanation
The age-life method (also called straight-line depreciation) calculates depreciation as the ratio of effective age to total economic life. For example, a 15-year-old building with a 60-year economic life has 25% depreciation (15/60).
Related Kentucky Property Valuation Questions
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