Property Valuation
In NC, 'economic life' of an improvement is:
AThe physical lifespan of the structure
BThe period during which the improvement contributes positively to the property's value✓ Correct
CThe number of years since the building was constructed
DThe time remaining on the property tax depreciation schedule
Explanation
Economic life is the period during which an improvement (building) contributes to the value of the property — i.e., when income from the property exceeds land value alone. It ends when the building no longer adds value, even if it is still physically standing.
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