DPA Appraisal Fundamentals Workshop Practice Test 2025 - Free Appraisal Fundamentals Practice Questions and Study Guide

The percentage depreciation is calculated using the formula that involves dollar depreciation in relation to the replacement cost new (RCN) of the property. This approach effectively shows how much value a property has lost compared to what it would cost to replace it new. By taking the dollar depreciation and dividing it by the replacement cost new, you can quantify the depreciation as a percentage, which provides a clear and standardized measure of value loss. This is particularly useful in appraisal practice, as it allows for consistent comparisons across properties and helps assess their value over time.

The other choices do not align with the concept of calculating percentage depreciation. For instance, dividing land value by sale price or sale price by land value focuses on different aspects of property valuation rather than depreciation. Additionally, adding sale price to land value does not yield a measure of percentage depreciation and is not relevant to assessing how much value has been lost.