REE 4103 EXAM 2 QUIZ QUESTIONS, REE
Exam 2, REE 4103 Test 2
20-year old boiler in an apartment bldg. Total life expectancy is 25 years. On date of
value boiler is working and does not need to be replaced. However, a buyer would know
that the boiler will have to be replaced within a few years. To replace the boiler on the
date of value would cost $30,000.
Using the age-life ratio, what is the depreciated value of the apartment building? -
ANS-$30,000 - $24,000 = $6,000
20-year old boiler in an apartment bldg. Total life expectancy is 25 years. On date of
value boiler is working and does not need to be replaced. However, a buyer would know
that the boiler will have to be replaced within a few years. To replace the boiler on the
date of value would cost $30,000.
Using the age-life ratio, what is the total dollar amount of depreciation? - ANS-$24,000
20-year old boiler in an apartment bldg. Total life expectancy is 25 years. On date of
value boiler is working and does not need to be replaced. However, a buyer would know
that the boiler will have to be replaced within a few years. To replace the boiler on the
date of value would cost $30,000.
Using the age-life ratio, what is the total percentage of depreciation?
Using the age-life ratio, what is the total dollar amount of depreciation?
Using the age-life ratio, what is the depreciated value of the boiler? - ANS-Using the
age-life ratio, what is the total percentage of depreciation? (20/25) = 80%
Using the age-life ratio, what is the total dollar amount of depreciation? $24,000
Using the age-life ratio, what is the depreciated value of the boiler? $30,000 - $24,000 =
$6,000
,20-year old boiler in an apartment bldg. Total life expectancy is 25 years. On date of
value boiler is working and does not need to be replaced. However, a buyer would know
that the boiler will have to be replaced within a few years. To replace the boiler on the
date of value would cost $30,000.
Using the age-life ratio, what is the total percentage of depreciation? - ANS-(20/25) =
80%
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the percentage depreciation of the decorations? - ANS-0%
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the percentage depreciation of the roof? - ANS-25%
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the total cost new of the long-lived items? - ANS-$653,000
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
,cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the total depreciated value of the long-lived items? - ANS-$163,250
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the total dollar amount of deferred maintenance?
What is the percentage depreciation of the roof?
What is the percentage depreciation of the decorations?
What is the total dollar amount of depreciation for all of the short-lived items?
What is the total cost new of the long-lived items?
What is the total depreciated value of the long-lived items? - ANS-What is the total
dollar amount of deferred maintenance? $5,000
What is the percentage depreciation of the roof? 25%
What is the percentage depreciation of the decorations? 0%
, What is the total dollar amount of depreciation for all of the short-lived items? $75,000
What is the total cost new of the long-lived items? $653,000
What is the total depreciated value of the long-lived items? $163,250
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the total dollar amount of deferred maintenance? - ANS-$5,000
25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged
$5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the
cost to replace it is $60,000. HVAC components should last another five years and were
installed when the building was built. The cost to replace the HVAC is $72,000. The
offices were just redecorated at a cost of $10,000, and will not need redecorating for
another 5 years. The life of the long-lived items is 100 years. What is the total physical
deterioration?
What is the total dollar amount of depreciation for all of the short-lived items? -
ANS-$75,000
A 30-year-old buidling with an effective age of 20 years has a total life expectancy of 50
years. How much depreciation has occurred? - ANS-40%
A 30-year-old building with an effective age of 20 years has a total life expectancy of 50
years. How much depreciation has occurred? - ANS-20/50= 40%
A 30-year-old building with an effective age of 20 years has a total life expectancy of 50
years. How much depreciation has occurred? - ANS-40%
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