Curable depreciation is defined as

• A. Depreciation that cannot be cured economically
• B. Depreciation that requires replacement of entire structure
• C. Depreciation that can be repaired at a cost not exceeding the resulting value increase
• D. Depreciation due to market conditions only

Answer: (C)

Curable depreciation is depreciation that can be eliminated by a repair, where the cost to cure is not greater than the value increase that repair would produce. This means the repair pays for itself in added value, so the depreciation is considered curable. For example, fixing a damaged component at a cost that’s less than the resulting boost in property value makes the depreciation curable. That’s why the statement about being repairable at a cost not exceeding the resulting value increase is the best fit. The other ideas describe depreciation that isn’t economically worth curing, or that involves replacing an entire structure, or that’s driven purely by market conditions, none of which capture the cost‑versus‑value test that defines curable depreciation.