What example illustrates Physical Curable depreciation?

Physical curable depreciation refers to the loss in property value that is caused by physical deterioration, which can be corrected or repaired. The correct example showcasing physical curable depreciation is the choice that mentions worn-out flooring and leaky faucets, as these are specific repairs that can be made to restore the property to its original or better condition.

Worn-out flooring can be replaced, and leaky faucets can be fixed, therefore these issues can be considered curable because they have a reasonable cost associated with their repair compared to the increase in property value that would result from those repairs.

In contrast, external options involve either aspects that may be outdated but do not directly involve physical deterioration, such as outdated systems, or options like long-lasting foundations, which typically indicate minimal or no depreciation. Single-pane windows and linoleum, while they may show wear and tear, are less focused on the immediate and actionable repairs that characterize physical curable depreciation. Thus, the example of worn-out flooring and leaky faucets most effectively illustrates this concept.