Property Valuation
According to the principle of 'contribution,' an improvement adds value to a property:
AEqual to its full construction cost regardless of market conditions
BOnly if it brings the property to its highest and best use
CIn proportion to how much it contributes to the total market value of the property✓ Correct
DOnly when the improvement is newly completed
Explanation
The principle of contribution measures an improvement's value by how much it adds to the overall property value, not by its construction cost. A $50,000 pool may only add $20,000 to market value if the market does not highly value pools in that area.
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