Valuation of Personal Property and Fixtures
Using Assessors’ Handbook Section 581 (Equipment Index, Percent Good, and Valuation Factors)
Appraisal Training: Self-Paced Online Learning Session

Lesson 2: Index Factors


Check Your Knowledge

The exercises below are to be worked by participants to ensure comprehension of information discussed in this lesson.  Additionally, it will help prepare certified property tax appraisers for the final examination that must be taken upon completion of this training session in order to receive appraisal training credit.

Before you start, please print the exercises using the "Print Questions" link below so you can work through the exercises on your own. After you work through the exercises, the solution can be viewed by clicking on the blue plus sign immediately following the question on the right hand side of the page. Additionally, when you have completed all the exercises, you may print all of the solutions using the "Print Questions with Answers" link below.

While all the exercises shown below use lien date 2011 for illustrative purposes, it must be remembered that it is the lien date for which values are sought that determines which AH 581 – and associated factors – will be used.




Exercise 1

Determine the index factor to be used in estimating the reproduction cost new (RCN) of the following types of equipment and fixtures, as of lien date 2011 (January 1).

Image of a table with four columns – row letters, equipment & fixtures, acquisition year, and index factor – and nine rows – column headings and a through h.  The table is arranged so that given the type of equipment/fixture – commercial, industrial, construction, and agricultural – and its acquisition year, the reader is able to compute and fill in the correct index factor.

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Exercise 2

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for retail department store equipment purchased and installed in 2006, for $250,000?

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Exercise 3

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for a forklift purchased and delivered in 2010, for $25,000?

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Exercise 4

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for furniture manufacturing equipment purchased and installed in 2002, for $250,000?

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Exercise 5

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for sheet metal manufacturing equipment purchased and installed in 2009, for $750,000?

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Exercise 6

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for a diesel fired heater (non-mobile construction equipment) purchased and delivered in 2006, for $30,000?

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Exercise 7

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for dairy farm equipment (non-mobileagricultural equipment) purchased and installed in 2007, for $85,000?

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Exercise 8

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for an excavator (non-mobile construction equipment) purchased new and delivered in 2001, for $250,000?

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Exercise 9

What is the reproduction cost new (RCN), as of lien date 2011 (January 1), for a farm sprayer (non-mobile agricultural equipment) purchased and delivered in 2003, for $62,500?

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