A building has 12 foot ceilings that cause the electric bill to be $1,200 higher per year than a conventional ceiling height.Depreciation caused by the ceilings can be estimated by calculating the present value of the $1,200 per year over the remaining economic life of building.

Question

Quizplus · Accepted Answer

This statement is true as it describes the calculation of depreciation caused by the higher ceilings. The present value of the additional $1,200 per year is calculated over the remaining economic life of the building to estimate the total depreciation caused by the ceilings.

A Building Has 12 Foot Ceilings That Cause the Electric