Real Estate Math
A property's replacement cost new is $380,000. The land value is $60,000. Accrued depreciation is $95,000. What is the indicated value by the cost approach?
A$345,000✓ Correct
B$285,000
C$320,000
D$440,000
Explanation
Cost approach value = Replacement cost − Depreciation + Land = $380,000 − $95,000 + $60,000 = $345,000.
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