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 6: Factor Adjustments


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 Recommended Maximum Index Factor for the following types of equipment based on the given economic life (service life), as of lien date 2011 (January 1).

Image of a table with four columns – row letters, equipment & fixtures, economic life (in years), and maximum index factor – and five rows – column headings and a through d.  The table is arranged so that given one of various types of equipment/fixtures – bakery, circuit board manufacturer, demolition contractor (non-mobile), and golf carts – and its economic life (average service life) – 15, 8, 12, and 6 – the reader is able to compute and fill in the correct recommended maximum index factor.

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Exercise 2

In 1994, a company purchased light plant equipment for $100,000. If the economic life of light plant equipment (non-mobile construction equipment) is 12 years, what is the recommended maximum index factor for use in valuing this type of equipment, as of lien date 2011 (January 1); and what is its RCN?

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Exercise 3

In 1995 a company purchased laboratory centrifuge equipment for $75,000. If the economic life of laboratory equipment is 10 years, what is the recommended maximum index factor for use in valuing the equipment, as of lien date 2011 (January 1); and what is its RCN?

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Exercise 4

In 1987 a cannery operator purchased cannery equipment for $825,000. If the economic life of cannery equipment is 17 years, what is the recommended maximum index factor for use in valuing this equipment, as of lien date 2011 (January 1); and what is its RCN?

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Exercise 5

In 1990, a cotton farm purchased four cotton gins for $235,500. If the economic life of non-mobile agricultural equipment is 15 years, what is the recommended maximum equipment index factor for use in valuing the harvester, as of lien date 2011 (January 1); and what is its RCN?

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