Property Valuation
In Maine, 'economic life' of a building refers to:
AThe actual physical age of the building
BThe period over which the building contributes to the value of the property✓ Correct
CThe remaining useful life of the building structure
DThe time until the building must be demolished
Explanation
Economic life is the period during which the improvements (buildings) contribute positively to the total property value. It may be shorter than the physical life if the improvements are obsolete.
Related Maine Property Valuation Questions
- A Maine property has a replacement cost new of $400,000 and total accrued depreciation of $60,000. The land value is $75,000. What is the value indication using the cost approach?
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