Property Valuation
A Nebraska appraiser uses the economic age-life method to estimate depreciation. The building cost new was $400,000. Effective age is 15 years; economic life is 60 years. Depreciation is:
A$50,000
B$75,000
C$100,000✓ Correct
D$125,000
Explanation
Depreciation % = Effective Age ÷ Economic Life = 15 ÷ 60 = 25%. Depreciation amount = $400,000 × 25% = $100,000.
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