Property Valuation
A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
A$160,000
B$200,000
C$210,000✓ Correct
D$250,000
Explanation
Cost Approach Value = Replacement Cost New − Depreciation + Land Value = $200,000 − $40,000 + $50,000 = $210,000.
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