Property Valuation
In Alaska, the 'allocation method' of land valuation estimates land value by:
AApplying the income approach to vacant land
BSeparating the total property sale price into land and building components using a typical land-to-total value ratio✓ Correct
CUsing zoning lot coverage ratios
DComparing the property to similar vacant land sales
Explanation
The allocation method estimates land value by applying a typical land value ratio (derived from market analysis of improved properties) to the total property sale price. If similar properties typically have a 20% land-to-total-value ratio and the total value is $500,000, the land value is estimated at $100,000.
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