Property Valuation

A Mississippi appraiser determines a property has a remaining economic life of 25 years and a total economic life of 50 years. Using age-life depreciation, the depreciation percentage is:

A25%
B50%✓ Correct
C75%
D30%

Explanation

Age-life depreciation percentage = Effective Age ÷ Total Economic Life. Effective age = Total economic life - Remaining economic life = 50 - 25 = 25 years. Depreciation % = 25 ÷ 50 = 50%. The property has used 50% of its total economic life.

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