The economic age-life method primarily focuses on which aspect of depreciation?

The economic age-life method primarily focuses on time and usage as it relates to depreciation. This method assesses depreciation based on the age of the asset relative to its expected useful life, taking into account how much time has elapsed since the asset was purchased or constructed and how much it has been used during that time.

In practice, the economic age-life method simplifies the process of estimating depreciation by focusing on the straight-line method of depreciation over the asset's economic life. It effectively measures how long an asset is expected to remain functional based on the duration and extent of its use. As assets age and experience wear and tear or obsolescence, their value diminishes, which is effectively captured by examining the correlation between time and usage.

This method does not focus solely on physical deterioration, cash flow analysis, or market demand, which are additional considerations in valuing personal property but are not the primary focus of the economic age-life method. It specifically emphasizes how the asset’s economic viability decreases due to time and the intensity of its usage, providing a clear framework for estimating the depreciation of personal property.