How is accounting depreciation defined in property assessment?

Accounting depreciation in property assessment refers to the systematic reduction in the recorded cost of a depreciable asset, which reflects its gradual loss of value over time. When considering the definition in the context of property assessment, the correct choice emphasizes the difference between the original cost of the asset and its net book value. This concept captures how much value has been allocated as an expense over time, resulting in a lower value on the balance sheet compared to the initial purchase price.

The original cost represents the initial expenditure made to acquire the property or asset, while the net book value reflects the current value after accounting for accumulated depreciation. This measure is important in property assessment as it helps appraisers determine the depreciated value of an asset, which may influence property tax assessments and overall valuation in the market.

The other options do not accurately portray this accounting principle. For example, simply stating the age of the property does not encompass the financial aspect of depreciation relative to cost. Similarly, referencing the difference between reproduction cost and current market value or the loss of value due to market fluctuations covers different concepts related to property valuation but does not capture the essence of accounting depreciation in this specific context. These distinctions clarify how property value is calculated beyond mere age or market trends.