Property Valuation
A Maine appraiser calculates depreciation on a 20-year-old building with an economic life of 50 years. Using straight-line depreciation, the depreciation percentage is:
A20%
B25%
C40%✓ Correct
D50%
Explanation
Straight-line depreciation = Effective Age ÷ Economic Life = 20 ÷ 50 = 40%. Appraisers in Maine use standardized methods to estimate property value for lending and sales..
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