Accrued Depreciation Is the Difference Between the Current Market Value

Multiple Choice

Accrued depreciation is the difference between the current market value of a building and the total cost to reproduce it new. One reason for this difference is related to changes in tastes, preferences, technical innovations, or market standards. This is commonly referred to as:

A) physical deterioration
B) functional obsolescence
C) external obsolescence
D) tax depreciation