Property Valuation
A Mississippi appraiser uses the 'age-life method' to estimate depreciation. If a building has an economic life of 50 years and an effective age of 10 years, the depreciation percentage is:
A10%
B20%✓ Correct
C25%
D50%
Explanation
Age-life depreciation % = Effective Age ÷ Total Economic Life = 10 ÷ 50 = 20%. Appraisers in Mississippi use standardized methods to estimate property value for lending and sales..
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