depreciation

Question

the reproduction cost new a subject commercial building is $800,000. The effective age is 8 years, and the remaining economic life is 42 years. On the basis of this information, which of the following amounts is the estimated accrued depreciation

Answer 1

Effective age + remaining economic life = economic life of building
Effective age/Economic life x Replacement Cost = Accrued Depreciation

 

 

economic life = 9 + 42 = 50

 

8/50 * 800000 = 128000

 

Source: http://www.realestatemanitoba.com/appraisal/unit5/topic5_economic.htm