Property Valuation
An Arizona appraiser calculates that a subject property has $75,000 of accrued depreciation on improvements with a reproduction cost of $300,000. The land value is $80,000. What is the indicated value by the cost approach?
A$225,000
B$305,000✓ Correct
C$255,000
D$380,000
Explanation
Cost approach value = Land value + (Reproduction cost - Accrued depreciation) = $80,000 + ($300,000 - $75,000) = $80,000 + $225,000 = $305,000.
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