Which of the following is NOT considered part of accrued depreciation?

The concept of accrued depreciation refers to the reduction in value of a property due to various factors that affect its physical condition and utility. It encapsulates different types of depreciation such as physical deterioration, functional obsolescence, and external obsolescence. When analyzing what constitutes accrued depreciation, it is important to differentiate between those categories that can indeed impact the asset's value.

The correct choice here is one that highlights a type of functional obsolescence which is deemed “uncurable within property.” Functional obsolescence specifically pertains to a decrease in property value due to inefficiencies or inadequacies that cannot be remedied without significant reconstruction or alterations to the property itself. This aspect of functional obsolescence often stems from changes in market preferences or standards but does not relate directly to the physical condition of the property at a given moment. Therefore, it is not considered part of accrued depreciation, which typically focuses on physical deterioration or those functional issues that can be addressed.

In contrast, the other types of accrued depreciation mentioned – specifically physical curable and functional curable – pertain to identifiable issues that can be resolved through repairs or renovations and directly affect the income potential or operational efficiency of the property. External obsolescence relates to market or environmental factors outside the property’s