Property Valuation

An Alaska appraiser using the cost approach calculates the following: land value $150,000, replacement cost new of improvements $400,000, total depreciation $80,000. The indicated value is:

A$320,000
B$430,000
C$470,000✓ Correct
D$550,000

Explanation

Value = Land value + (Replacement cost new − Total depreciation). $150,000 + ($400,000 − $80,000) = $150,000 + $320,000 = $470,000.

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