Which of the following is NOT a direct method for measuring depreciation?

The capitalization of income method is recognized as an indirect approach to measuring depreciation because it focuses on estimating the value of the property based on its income potential rather than directly evaluating its physical wear and tear. In contrast, the other methods listed, such as the economic age-life method, modified economic age-life method, and breakdown method, involve more direct assessments of the asset’s depreciation by analyzing physical attributes or age over time.

For instance, the economic age-life method uses the estimated useful life of an asset to determine its depreciation over time, while the modified economic age-life method adjusts this calculation based on additional factors influencing depreciation. The breakdown method evaluates individual components of an asset and applies a separate depreciation value to each part, providing a granular and direct approach. Understanding these distinctions is crucial for a Certified Tax Assessor, as the direct methods provide a clearer picture of an asset's physical condition and value decline over time.