remaining economic life

remaining economic life

The number of years between the date of an appraisal and the date a property improvement will cease to have any economic value, even if it will still be structurally sound. A solidly built parking deck with short ceiling heights, narrow lanes, and tight turning radii might have a limited remaining economic life because most modern cars, particularly trucks and SUVs,cannot use the deck.

References in periodicals archive ?
transport and main roads requires independent engineering assessment to evaluate the remaining economic life of the existing livestock rail wagon with respect to existing rail fleet safety requirements and to determine the costs of refurbishing rail wagons.
Type "B" leases assume that the lease duration is not for the major portion of the asset's remaining economic life and that the lease payments do not account for substantially all of the real property's fair value.
A company enters into a 15-year lease of an office building that has a remaining economic life of 40 years and a fair value of $400,000 at lease commencement.
The first step was the estimation of the value of the improvements using the projected remaining economic life of the improvements.
The existing stock of productive assets often has significant remaining economic life and past pricing strategies have been based upon life cycle amortization.
Gen-Probe expects to amortize its share of the payment to cost of goods sold over the patent's remaining economic life.
O'Okiep, a mining and smelter complex established in 1937 and acquired by Metorex in 1998, has a remaining economic life of only some three years.
C contributes equipment with an adjusted tax basis of $1,000 and a book value of $10,000, with a view to taking advantage of the fact that the equipment has only one year remaining on its cost recovery schedule although its remaining economic life is significantly longer.
The property has an adjusted basis of $150,000 with a remaining recovery period of 10 years and a market value of $450,000 with a remaining economic life of 15 years.
A more rigorous and thorough valuation and analysis of the remaining economic life of the intangible asset would be required in the actual pricing and structuring phase of implementing the intangible asset transfer program.
The Company believes that the vessels have been well maintained and have long remaining economic life spans.
The increased loan term was supported by the estimated remaining economic life of the property at 50 years, and the quality condition of the property.