Property Valuation
Accrued depreciation in the cost approach refers to:
AThe annual allowable tax deduction for improvements
BThe total loss in value of the improvements from all causes as of the appraisal date✓ Correct
CThe increase in value of a property over time
DThe replacement cost of the improvements new
Explanation
Accrued depreciation is the total loss in value that has occurred in the improvements from all causes — physical deterioration, functional obsolescence, and external obsolescence — measured as of the appraisal date.
Related Arizona Property Valuation Questions
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