Question

A structure's reproduction cost new is $375,000. The home is 12 years old and has an effective age of 8 years. Assuming a total economic life of 60 years, what is the accrued depreciation (rounded) using the age-life method? (Round the final calculation to the nearest dollar.)

Answer 1

The Correct answer is $50,000

Step-by-step explanation:

(8 years effective age ÷ 60 economic life) × $375,000 reproduction cost = $50,000.

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