Segregated Estimator has the following methods for computing the section's physical and functional depreciation:
Combined Physical & Functional Depreciation
Separate Physical & Functional Depreciation
Each of these methods is described below. The section's physical and functional depreciation is applied to all components in Construction Systems that are included in Replacement Cost New, except those components that you depreciate individually.
With this option, Segregated Estimator calculates the combined physical and functional depreciation percentage using the tables in the Marshall Valuation Service and Commercial Cost Explorer. This calculation is based on the Occupancy, Construction Class, Quality, Effective Age and Typical Life. This calculation does not include either of the following:
Abnormal or Excessive Functional Depreciation, which you can add using the Additional Functional Depreciation field.
External Obsolescence, which you can add using the External Depreciation field.
This is the combined percentage for normal physical and functional depreciation to be subtracted from the replacement cost new when computing the depreciated cost. This prints in the report as a single line, “Physical and Functional Depreciation.”
Example: If you enter 12.5% for combined physical and functional depreciation, the report includes the following:
Units Cost Total
Replacement Cost New 20,000 68.53 1,370,600
Less Depreciation
Physical & Functional 12.5% 171,325
Depreciated Cost 20,000 59.96 1,199,275
These fields set separate values for physical and functional depreciation, which are printed as separate lines in the report.
Example: If you enter 12% for physical depreciation and 7.5% for functional depreciation, the report includes the following:
Units Cost Total
Replacement Cost New 20,000 68.53 1,370,600
Less Depreciation
Physical 12.0% 164,472
Functional 7.5% 102,795
Depreciated Cost 20,000 55.17 1,103,333
Note: If you set separate Physical and Functional Depreciation percentages, the physical percentage is applied These fields set separate values for physical and functional depreciation, which are printed as separate lines in the report.
Select this method to set the combined Physical and Functional Depreciation Percentage using Age/Life of Straight Line depreciation. With this method, the percentage is calculated as the Effective Age divided by the Typical Life.
Example: If the Effective Age is 15 years and the Typical Life 60 years, the calculated depreciation percentage is 25%.