Property Valuation
An appraiser in Spokane is using the cost approach for a 25-year-old commercial building. The building has an effective age of 20 years and an economic life of 50 years. What is the accrued depreciation percentage?
A40%✓ Correct
B50%
C60%
D80%
Explanation
Accrued depreciation using the age-life method = effective age ÷ economic life = 20 ÷ 50 = 40%. Appraisers in Washington use standardized methods to estimate property value for lending and sales.. The correct answer is 40%.
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