13-37.Physical and functional obsolescence may be curable in estimating depreciation when:

Question

Quizplus · Accepted Answer

Physical and functional obsolescence can be cured when the cost to remedy them is not greater than the value added by the repairs. This means that the repairs or improvements must not cost more than the increase in the property's value that they will generate. If the repairs or improvements are economically feasible, then the physical and functional obsolescence can be cured and the property's depreciation can be estimated accordingly. However, the other options are not relevant to the cure of physical and functional obsolescence.

13-37Physical and Functional Obsolescence May Be Curable in Estimating Depreciation