The subject property is a 10-year old commercial building that has been badly maintained. It is estimated that the effective age of the improvements is at 20 years. At the effective valuation date it is estimated that the production cost new and the remaining economic life of the improvements would be at $200,000 and approximately 35 years respectively.

 

 i.  What is the implied total economic life of the improvements?

 ii. What is the percentage amount of accrued depreciation for the subject improvements by the economic age-life method?

 iii. What is the lump-sum dollar amount of accrued depreciation for the subject improvements?

 iv. What is the contributory value (depreciated value) of the improvements?

 v. Assuming a land value of $100,000, what is the value indication by Cost approach?

Answer rating: 100% (QA)

i The implied total economic life of the improvements can be calculated using the effective age and the remaining economic life of the improvements In ... View the full answer