3) The method for estimating depreciation in which the ratio of effective age to economic life is applied to the cost of the improvements is the a) breakdown b) rent loss capitalization c) age life d) market extraction 4) Assuming the facts below, calculate the amount of incurable depreciation using the modified age life method. Estimated reproduction cost $100,000 Curable depreciation $5,000 Effective age 21 years Economic life 60 years a) $35,000 b) $1750 c) $33,250 d) $17,500 5) Property 1 has two bedrooms and one bath. Property 2 has two bedrooms and two baths. In all other respects, the two properties are identical. Property 2 generates $900 more in rental income per year than Property 1. The appropriate capitalization rate is 9 Using the rent loss capitalization method, Property 1 suffers from depreciation (functional obsolescence) amounting to: a) $8,100 b) $10,000 d) $675