Which depreciation method would account for the current condition of a property?

The effective age assessment is a depreciation method that takes into account the current condition of a property, as it considers both the chronological age and the actual wear and tear or improvements made to the property. This method evaluates how the property's physical condition and functional utility may differ from its actual age.

By assessing the effective age, appraisers can provide a more accurate picture of the property's value because it reflects not just the age of the building, but also its maintenance history, upgrades, and any other factors that may affect its marketability and longevity. For instance, a well-maintained property might have an effective age that is significantly less than its actual age, positively influencing its value.

In contrast, options like the actual age method simply refer to the flat chronological age without considering the property's condition, while the age-life depreciation method calculates depreciation based on the total economic life and effective age but may not focus directly on the current condition in the same way. A flat depreciation rate, on the other hand, applies a uniform reduction regardless of the specific state of the property, thus failing to account for variances in condition.