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 5: Determining the Economic Life/Average Service Life of Equipment and Fixtures


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 average service (economic) life to be used in estimating the RCNLD (Reproduction Cost New Less [normal] Depreciation) – market value – of the following equipment and fixtures, as of lien date 2011 (January 1).

Image of a table with three columns – row letters, equipment & fixtures and average service life – and thirteen rows – column headings and a through l.  The table is arranged so that given one of various types of equipment/fixtures – hotel furnishings, service station equipment, et cetera – the reader is able to compute and fill in its correct average service life.

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Exercise 2

What is the economic life (average service life), as of lien date 2011 (January 1), of retail department store equipment?

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Exercise 3

What is the economic life (average service life), as of lien date 2011 (January 1), of a forklift?

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Exercise 4

What is the economic life (average service life), as of lien date 2011 (January 1), of furniture manufacturing equipment?

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Exercise 5

What is the economic life (average service life), as of lien date 2011 (January 1), of sheet metal manufacturing equipment?

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Exercise 6

What is the economic life (average service life), as of lien date 2011 (January 1), of a diesel fired heater (non-mobile construction equipment)?

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Exercise 7

What is the economic life (average service life), as of lien date 2011 (January 1), of farm equipment (non-mobile agricultural equipment)?

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