Part 12-Applied Depreciation Flashcards
The _____-Life depreciation method, produces an estimate of total depreciation. Depreciation can’t be broken down into physical, functional or external categories
Age
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The _________ Life is the effective life expectancy of the improvement
Economic Life
In the __________ _________ method, we would select similar improved property sales, and apply the extraction process
Market Extraction
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What does EA + REL = EL mean?
Effective Age + Remaining Economic Life = Economic Life
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The __________ life is the period of time over which a structure or component may be expected to last
Useful
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The ___________ Useful Life is the estimated period during which improvements will continue to provide utility
Remaining
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The Breakdown Method deals with _______ age and not effective age
Actual
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__________ physical deterioration are relatively minor items that are normally taken care of in the course of regular maintenance
Curable
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Examples of curable physical deterioration would be:
Broken windows, broken steps peeling paint, broken door, cracked driveway…
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__________ physical deterioration includes items of deterioration that can’t be practically or economically corrected as of the effective date of appraisal
Incurable
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The Breakdown Method is
A.A. + R.U.L. = U.L.
Actual Age + Remaining Useful Life = Useful Life
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___________ obsolescence is a loss in value from defects in design
Functional
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T/F An obsolescence is curable if the value add is greater than the cost to cure
True
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An __________ obsolescence is diminished utility of a structure due to negative influences outside the site and are generally incurable
External
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T/F Age-Life is the simplest depreciation method
True
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