Property Valuation Financial AnalysisDepreciationEASY
Which of the following statements is least applicable to depreciation?
Correct Answer
C) Depreciation can be computed for the future or from the past.
Land cannot be depreciated; only improvements depreciate over time.
Answer Options
A
Depreciation is defined as the difference between the value of improvements and the cost of replacement as of the appraisal date.B
Depreciation is a loss of value from any cause.C
Depreciation can be computed for the future or from the past.D
Depreciation is always concerned with the intrinsic factors of property, never with the extraneous factors.Audio Lesson3 min
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Related Topics & Key Terms
Related Topics:
cost-approach-valuationcapitalization-methodproperty-tax-assessment
Key Terms:
depreciationexternal obsolescencecost approachaccrued depreciationfunctional obsolescence
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