Washington State Real Estate Practice Exam

Accrued depreciation in property appraisal refers to the accumulated depreciation that has occurred up to a given date. This means that it takes into account the depreciation that has already taken place, rather than projecting future depreciation. Option A, on the other hand, suggests that accrued depreciation refers to the expected future depreciation, which is incorrect. Option C mentions a specific depreciation rate set by tax authorities, which is also incorrect as accrued depreciation does not depend on any external set rate. Option D mentions market fluctuations as the cause of depreciation, which is incorrect. Accrued depreciation is primarily caused by wear and tear, age, and other factors related to the property itself. So, option B is the correct answer as it accurately describes the meaning of accrued depreciation in property appraisal.