Which of the following is NOT a legitimate type of accrued depreciation?

The correct response identifies "Overall Age Life" as not being a legitimate type of accrued depreciation. Accrued depreciation refers to the loss in value of a property due to specific causes over time, which can be categorized into three primary types: physical depreciation, functional obsolescence, and economic obsolescence.

Physical depreciation occurs due to wear and tear from physical factors, such as age, weather, and usage. Functional obsolescence arises when a property’s design or feature is less desirable than it could be, often due to changing market preferences or technological advancements. Economic obsolescence refers to factors outside the property that impact its value, such as changes in the neighborhood or economic conditions that reduce market desirability.

On the other hand, "Overall Age Life" doesn't fall under these classifications of accrued depreciation. Instead, it refers to a measure used in the valuation process. Typically employed to estimate the remaining economic life of a property, it doesn't represent a type of depreciation but rather a method or concept used to understand how long an asset will continue to yield value. Therefore, distinguishing "Overall Age Life" from the established types of accrued depreciation clarifies why it is not a legitimate form of accrued depreciation.