Which depreciation type is economically feasible to cure?

• A. Curable depreciation
• B. Incurrable depreciation
• C. Functional depreciation
• D. Obsolescence

Answer: (A)

The main idea here is whether a depreciation issue can be corrected in a way that makes financial sense. Curable depreciation is the form where fixing the problem costs less than or equal to the value that fixing it will add. When a defect or shortcoming can be corrected with a reasonable investment and that investment boosts the property's value or marketability, it is economically feasible to cure. For example, replacing worn carpet or updating a dated kitchen might cost a certain amount but can raise the sale price by more than that cost, making curing worthwhile.

Incurable depreciation, by contrast, happens when the cost to fix would exceed the value gained, so curing isn’t economically justified. Functional depreciation refers to design or layout issues that reduce usefulness or appeal, which may or may not be curable depending on cost and value added. Obsolescence covers depreciation from external or market factors that make the property less desirable; again, curing is only feasible if the cure would economically pay off. Since the question asks which depreciation type is economically feasible to cure, the best fit is curable depreciation.