Property Valuation
An Alaska property sold for $485,000. The appraiser determines the land is worth $95,000. The improvements' depreciated value (from the cost approach) is:
A$95,000
B$390,000✓ Correct
C$485,000
D$580,000
Explanation
Depreciated value of improvements = Total value − Land value. $485,000 − $95,000 = $390,000. Using the values given ($485,000, $95,000), apply the appropriate formula.. The correct answer is $390,000.. This is a common calculation on the Alaska real estate exam.
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