In depreciation, whether an item that needs repair is curable or incurable depends on:
- the cost of the repair
- the cost of repairs relative to the value added by the repairs
- the value added by the repairs
- whether or not it can actually be repaired
The answer is B. Curable depreciation means that if repairs and/or remodeling are undertaken, the expense/cost of the repairs will be less than the value added to the property. For example, suppose you have to pay $10,000 to fix your bathroom, but the value added to your home by fixing your bathroom is $5,000 – then this is considered incurable since the value added is less than the cost of the repairs. If the value added is $10,000 or more then it would be considered to be curable.