Property Valuation
An appraiser determines a Missouri commercial building has a remaining economic life of 25 years. Using straight-line depreciation with a total economic life of 50 years, the depreciation rate per year is:
A1%
B2%✓ Correct
C4%
D5%
Explanation
Straight-line depreciation rate = 100% / Total Economic Life = 100% / 50 years = 2% per year. If the remaining economic life is 25 years, the building is already 50% depreciated.
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