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REE 4103 Exam 2- No Math flashcard set (1).
REE 4103 Exam 2- No Math flashcard set (1).
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REE 4103 Exam 2- No Math flashcard setA building that is too large for the neighborhood is an example of functional
obsolescence in the form of over improvement. Another example of functional
obsolescence is - ANS-an awkwardly shaped floor plan in an office building
The total construction cost of a structure requires consideration of which of the
following? - ANS-Direct and indirect costs along with entrepreneurial profit
Depreciation is defined as the difference between the - ANS-Difference between the
contributory value of an improvement and its cost at the time of appraisal
Economic life is - ANS-the period over which improvements to real estate contribute to
the value of the property
Cost is - ANS-The actual amount of expenditure necessary to acquire or produce
something
Reproduction cost is - ANS-the cost of creating an exact replica of the improvements,
using the same materials, design, layout, and level of craftsmanship
Replacement cost is - ANS-the cost of building an improvement of equal utility, but
using modern materials, techniques, layout, and design
Entrepreneurial profit is the profit made by the - ANS-A market-derived figure that
represents the amount an entrepreneur receives for his or her contribution to a project
and risk
Which of the following is NOT a type of depreciation - ANS-entrepreneurial loss
Which of the following best illustrates curable functional obsolescence? - ANS-A narrow,
short carport that can be enlarged at a low cost
Useful life is - ANS-the period over which a building may be profitably used
The period over which a building may be profitably used is its - ANS-useful life
The period of time over which improvements contribute to property value is called -
ANS-economic life
, Subtracting an improvement's current market value from its reproduction cost new
indicates - ANS-Accrued Depreciation
Short-lived items refer to - ANS-items that don't need to be replaced on the date of
value, but will need to be replaced before the end of the economic life of the property
(roof, HVAC, water heater, etc.)
In calculating depreciation, a limitation of the age-life method is that it - ANS-tends to
ignore physical deterioration
In appraisal, accrued depreciation is really an estimate of - ANS-diminished utility
If an improvement suffers from a loss in value attributable to wear and tear from regular
use, it is called - ANS-physical deterioration
Functional obsolescence attributed to a property may result from - ANS-changes in
popular taste
External or economic obsolescence is normally NOT - ANS-curable by the owner, the
landlord, or the tenant
External or economic obsolescence can be caused by all of the following except -
ANS-factors within the property
Estimation of accrued depreciation and obsolescence does NOT involve - ANS-financial
structure
Economic/External obsolescence in a residence does not result from - ANS-an outdated
kitchen
Economic life refers to - ANS-the period over which improvements to real estate
contribute to the value of the property
Curable physical deterioration is - ANS-items (deferred maintenance) that a prudent
purchaser would anticipate correcting immediately upon acquisition of the property
Curable functional obsolescence is - ANS-the result of either a deficiency or an excess
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