Ace the Pennsylvania Auctioneer Test 2024 – Hit the Gavel and Seal The Deal!

The correct answer is B. The three classes of depreciation are physical depreciation, functional depreciation, and economic depreciation. Physical depreciation refers to the wear and tear or deterioration of a property's physical structure and components. Functional depreciation takes into account changes in design, layout, or functionality that affect the property's value. Economic depreciation reflects external factors such as changes in the market, neighborhood, or economy that impact the property's worth.