Part 11 Commercial And Depreciation Costs

Question 1

____________ deterioration is the slow destruction (or wear and tear) of the structural components that goes on every day

Answer 1

Physical

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Question 2

______________ obsolescence is the impairment of functional capacity attributes to a particular property according to market tastes and standards. Something “off” with the design

Answer 2

Functional

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Question 3

____________ obsolescence is a loss in value from physical or economic causes extern to the property. We have no control over.

Answer 3

External

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Question 4

_____________ is a loss in property value from any cause

Answer 4

Depreciation

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Question 5

__________ life is the period over which improvements contribute to property value

Answer 5

Economic

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Question 6

_____________ Economic Life is the period which improvements are expected to contribute

Answer 6

Remaining

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Question 7

___________ age is the number of years that have elapsed since construction of an improvement was completed

Answer 7

Actual

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Question 8

__________ age is the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained

Answer 8

Effective

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Question 9

T/F Effective age is fact

Answer 9

False, it is an opinion

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Question 10

In the market ____________ method one uses comparable sales to extract depreciation

Answer 10

Extraction

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Question 11

In the _____-_____ method one uses a ratio applied to the current cost of the structure

Answer 11

Age-life

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Question 12

In the ____________ method we measure each cause of depreciation: physical, function and external

Answer 12

Breakdown

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