In the age-life method of measuring depreciation, what is divided by the total economic life?

In the age-life method of measuring depreciation, effective age is divided by the total economic life to calculate the depreciation rate. Effective age represents the age of a property based on its condition, utility, and functional obsolescence rather than just how long it has existed since construction. This measure takes into account how well the property has been maintained and its relevance in the market, which can differ from its chronological age.

This method helps appraisers determine how much value a property has lost over time due to wear and tear or changing market conditions, making it a crucial factor in valuation. Using effective age ensures that the depreciation reflects the property's current state, rather than merely how long it has been since it was built, providing a more accurate assessment of its worth.