Property ValuationIntermediateAlaska Exam

In Alaska, assessed value for property tax purposes is set by boroughs. If a property has a market value of $400,000 and the assessment ratio is 80%, the assessed value is:

A$80,000 (calculated using an incorrect assessment ratio or rate)
B$320,000Correct
C$400,000
D$480,000

Why $320,000 Is Correct

Answer B: $320,000

Assessed Value = Market Value × Assessment Ratio = $400,000 × 0.80 = $320,000.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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