Commercial Estimator automatically computes the normal physical and functional depreciation based on the occupancy, class, quality and effective age. This calculation does not include either abnormal or excessive functional depreciation, or any external obsolescence, which you must add separately.
You can override this automatic calculation by making an entry for either combined physical & functional depreciation, or for physical and/or functional depreciation separately.
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.” This overrides the automatic calculation based on occupancy, class, quality and effective age.
Example: If you enter 12.5% for combined physical and functional depreciation, the report includes the following:
|
|
Units |
Unit Cost |
Total Cost New |
Less Depreciation |
Total Cost Depreciated |
|
Replacement Cost New |
20,000 |
68.53 |
1,370,600 |
|
|
|
Less Depreciation |
|
|
|
|
|
|
Physical & Functional |
12.5% |
|
|
171,325 |
1,199,275 |
|
Depreciated Cost |
20,000 |
59.96 |
|
171,325 |
1,199,275 |
These fields set separate values for physical and functional depreciation, which are printed as separate lines in the report. Entering either of these overrides the automatic depreciation calculation based on occupancy, class, rank and effective age.
Example: If you enter 12% for physical depreciation and 7.5% for functional depreciation, the report includes the following:
|
|
Units |
Unit Cost |
Total Cost New |
Less Depreciation |
Total Cost Depreciated |
|
Replacement Cost New |
20,000 |
68.53 |
1,370,600 |
|
|
|
Less Depreciation |
|
|
|
|
|
|
Physical |
12.0% |
|
|
164,472 |
1,206,128 |
|
Functional |
7.5% |
|
|
102,795 |
1,103,333 |
|
Depreciated Cost |
20,000 |
55.17 |
|
171,325 |
1,103,333 |
|
|
Units |
Unit Cost |
Total Cost New |
Less Depreciation |
Total Cost Depreciated |
|
Replacement Cost New |
20,000 |
68.53 |
1,370,600 |
|
|
|
Less Depreciation |
|
|
|
|
|
|
External |
12.5% |
|
|
171,325 |
1,199,275 |
|
Depreciated Cost |
20,000 |
59.96 |
|
171,325 |
1,199,275 |