Problem:
In applying the income approach, depreciation is excluded from operating expenses in the calculation of net operating income. Which one of the following statements is an explanation for why depreciation is excluded? Group of answer choices Depreciation measures a loss in value that occurs despite regular repairs and maintenance. Depreciation affects only the building component of the property. Depreciation expense is excluded from calculations for income tax purposes. The life of a building is primarily determined by economic factors rather than physical condition.