Estimating Depreciation - Estimating Accrued Depreciation
4 important questions on Estimating Depreciation - Estimating Accrued Depreciation
What are the two general methods for estimating accrued depreciation?
- Lump-sum age/life method - based on the overal relation between age and depreciation.
- Breakdown method - separate estimates for each sub-group depreciation value.
What is an disequilibrium condition in the market?
What is the MCF ratio
MCF = Selling price of the improvement / Reproduction cost less other accrued depreciation
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What is the difference between curable and incurable depreciation?
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