Cost Approach

Which type of depreciation is considered incurable?

Which type of depreciation is always incurable?

A building cost $2,500,000 to construct 8 years ago. Using straight-line depreciation over a 40-year life, what is the current depreciated value?

A building has an actual age of 20 years and an effective age of 15 years. If the total economic life is 50 years, what is the remaining economic life?

Using the age-life method, what is the percentage of accrued depreciation for a 15-year-old building with a total economic life of 50 years?

A property has a replacement cost of $1,800,000. Physical deterioration is estimated at $200,000, functional obsolescence at $150,000, and external obsolescence at $100,000. What is the depreciated value using the breakdown method?

Using the age-life method, what is the depreciation percentage for a building that is 15 years old with an economic life of 60 years?

A building has an effective age of 15 years and a total economic life of 60 years. Using the age-life method, what is the depreciation percentage?

A building was constructed 15 years ago but appears to be in the condition of a typical 8-year-old building due to excellent maintenance. The effective age is:

A building has an effective age of 15 years and a total economic life of 50 years. Using the age-life method, what is the percentage of accrued depreciation?

A building cost $2,000,000 to construct 10 years ago. Using straight-line depreciation over a 40-year life, what is the current depreciated value?

In the extraction method of estimating depreciation, if the land value is $200,000, the sale price is $750,000, and the replacement cost new is $800,000, what is the amount of depreciation?

A property has a reproduction cost new of $280,000. Physical depreciation is $35,000, functional obsolescence is $15,000, and external obsolescence is $20,000. What is the depreciated cost of the improvements?

What is the primary difference between effective age and actual age of a building?

A property is improved with a building that cost $2,000,000 to construct but would cost $2,500,000 to replace today. The building generates $180,000 annual net income. If the land value is $500,000 and typical returns require 8% capitalization rate, the highest and best use as improved is:

A building cost $2,400,000 to construct new. After 8 years with straight-line depreciation over 40 years, what is the depreciated value?

In the cost approach, reproduction cost differs from replacement cost in that reproduction cost:

In analyzing functional utility, which factor would most likely indicate functional obsolescence?

A building has a replacement cost of $800,000. Using the breakdown method, physical deterioration is $120,000, functional obsolescence is $50,000, and external obsolescence is $30,000. What is the depreciated value of the improvements?

A 25-year-old building has an effective age of 15 years. This indicates that:

Using the straight-line method, a building with a 50-year economic life that is 15 years old has what percentage of depreciation?

A property has a replacement cost new of $400,000, physical depreciation of $50,000, functional obsolescence of $25,000, and external obsolescence of $30,000. What is the depreciated cost of the improvements?

A building constructed in 1995 has an estimated total economic life of 60 years. If the effective age is determined to be 15 years, what is the remaining economic life?

Using the age-life method, a building has an effective age of 8 years and an economic life of 40 years. What percentage of depreciation has occurred?

A building cost $500,000 new and has depreciated $125,000. Using the extraction method, if the land is worth $150,000, what is the depreciated value of the improvements?

A house has 8-foot ceilings throughout when the market expects 9-foot ceilings. This is an example of:

Using the age-life method, what is the accrued depreciation for a 15-year-old building with a total economic life of 60 years and a reproduction cost of $400,000?

In the cost approach, economic obsolescence is characterized as:

A house built in 1960 has original single-pane windows, no central air conditioning, and 100-amp electrical service. These deficiencies primarily represent:

A building has an actual age of 15 years but an effective age of 10 years due to excellent maintenance. If the total economic life is 50 years, what is the remaining economic life?

A special purpose property like a church would most likely be valued based on:

A building has a reproduction cost new of $800,000. Physical deterioration is estimated at $150,000, functional obsolescence at $75,000, and external obsolescence at $50,000. What is the depreciated cost of the building?

Replacement cost differs from reproduction cost in that replacement cost:

Functional obsolescence can be caused by:

A building was constructed in 1980 but has been well-maintained and recently renovated. Its actual age is 44 years, but it shows the condition of a building that is 15 years old. The effective age is:

A building has an actual age of 12 years and an effective age of 18 years. If the total economic life is estimated at 50 years, what is the remaining economic life?

Using the extraction method, if land value is $200,000, total property value is $750,000, and the building is 10 years old with a 50-year life, what is the reproduction cost new of the building?

A building cost $800,000 to construct 15 years ago and has an estimated total economic life of 60 years. Using the age-life method, what is the accrued depreciation?

A building was constructed 15 years ago but has been well-maintained and recently updated with new HVAC and flooring. The appraiser estimates its effective age at 8 years. What does this indicate about the property?

A single-family residence has 4 bedrooms but only 1 bathroom, while the market standard for similar homes is 2.5 bathrooms. This deficiency represents:

What is the primary difference between replacement cost and reproduction cost?

Functional obsolescence can be described as:

External obsolescence is characterized by:

A building with an actual age of 20 years and an effective age of 25 years would indicate:

A building was constructed 15 years ago but appears to be in the condition of a typical 10-year-old building due to excellent maintenance. What is the building's effective age?

Replacement cost differs from reproduction cost in that replacement cost:

Which type of depreciation is considered incurable?

A 25-year-old building has an effective age of 15 years and a total economic life of 50 years. What is the remaining economic life?

A building has a reproduction cost of $500,000. It suffers from $75,000 in physical deterioration, $25,000 in functional obsolescence, and $40,000 in external obsolescence. What is the depreciated cost of the building?

Which type of depreciation is considered incurable when the cost to cure exceeds the value added?