Property Valuation
In Michigan appraisal, 'economic life' of an improvement refers to:
AThe number of years a building has been standing
BThe period of time over which the improvement contributes positively to property value✓ Correct
CThe remaining life of the mortgage
DThe useful life for tax depreciation purposes
Explanation
Economic life is the period during which an improvement contributes positively to the property's value. When a structure's costs exceed its income contribution, its economic life has ended, even if it is still physically standing.
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