The subject property has an equipment shed that is 40' x 60'. The replacement cost is estimated to be $95 per square foot. The effective age is 20 years with a remaining economic life of 25 years. Curable physical deterioration is $17,000. At present the shed does not have a door large enough to accommodate modern equipment. A larger door was included in the replacement cost; however, it would cost an additional $3,500 to install the door in the present shed. Therefore, curable functional obsolescence is $3,500.

a) Determine the total accrued depreciation.

b) Determine the contributory value of the shed.

Answer rating: 100% (QA)

To determine the total accrued depreciation and the contributory value of the shed well need to cons... View the full answer