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charle [14.2K]
2 years ago
11

A garage building has an effective age of 5 years and a total economic life of 25 years. what is the percentage of accrued depre

ciation by the age-life method?
Social Studies
1 answer:
Anna71 [15]2 years ago
6 0

Total Economic Life = Effective Age + Remaining Economic Life

(i.e., 5+25= 30)

Depreciation =  Total Economic Life/Effective Age

(i.e., 30/5= 6%)

This is the Age-Life Method of estimating depreciation of a structure which is used in real estate. This is also called straight line method. The fundamental tenet of this concept is that degradation happens at a consistent average annual pace.

So, in the present problem the garage will start to depreciate by 6% per year in the course of its total economic life, which is, 30 years. The depreciation rate is the proportion at which a property depreciates during its anticipated useful life.

To learn more about Depreciation Rate here

brainly.com/question/11861805

#SPJ4

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