What Is Depreciation?

Depreciation across 2 exams

Depreciation appears on the following exams. Each defines it in the context candidates are tested on:

RE Appraiser

A loss in value of improvements from any cause, including physical deterioration, functional obsolescence, and external obsolescence.

Public Adjuster

The reduction in an item's value attributable to age, use, and wear, which is subtracted from replacement cost to arrive at actual cash value.