Real Estate Principles 3rd Edition by David Ling,Wayne Archer

Exercise 11

Reserves for replacement and other nonrecurring expenses are allowances that reflect:
A) The annual depreciation of the building.
B) The annual depreciation of the long-lived components of the building.
C) The annual depreciation or appreciation of the entire property.
D) The annual depreciation of the short-lived components of the building and expenses that occur only occasionally.
E) The depreciation or appreciation of the land.