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

Accrued depreciation refers to the reduction in value of a property due to various factors. It encompasses the different ways in which a property can lose value over time, primarily broken down into categories like physical deterioration, functional obsolescence, and external obsolescence.

Physical deterioration involves the wear and tear of a property due to age, lack of maintenance, or natural factors. It directly pertains to the physical condition of the property itself. Functional obsolescence relates to a property's design or layout becoming outdated or less useful. This could be due to changes in consumer preferences or changes in technology that make a property less desirable.

External obsolescence, on the other hand, occurs due to factors outside of the property that adversely affect its market value. This could include declining neighborhood conditions or economic downturns affecting the area surrounding the property.

Market obsolescence, however, is not typically classified as a distinct type of accrued depreciation. While it suggests that a property could lose value due to market conditions, it is often encompassed under external obsolescence. Thus, labeling market obsolescence as a separate type indicates a misunderstanding of how these forms of depreciation are categorized in real estate valuation. The distinction among the main types of accrued depreciation helps appraisers and