What is the annual depreciation percentage for a building with an economic life of 50 years?

To determine the annual depreciation percentage for a building with an economic life of 50 years, one can use the straight-line depreciation method. This method assumes that the value of the building decreases uniformly over its economic life.

In this situation, the annual depreciation rate can be calculated as follows: it is generally expressed as a fraction obtained by dividing the number of years in a building's economic life by 100%. For a building with an economic life of 50 years, the calculation would be:

1 divided by 50 gives us 0.02, which when converted to a percentage is 2%.

This means that each year, the building would depreciate in value by 2% of its original value. Using the straight-line method provides a simple and effective way to estimate depreciation over time, ensuring that the value of the building is accurately reflected in the accounting and valuation processes.