Property Valuation
When using the cost approach for appraisal, 'accrued depreciation' refers to:
AThe depreciation claimed on income tax returns
BThe total loss in value from all causes affecting the property as of the appraisal date✓ Correct
CAnnual straight-line depreciation over the building's economic life
DThe difference between replacement cost and reproduction cost
Explanation
Accrued depreciation in appraisal is the total loss in value from all causes—physical deterioration, functional obsolescence, and external (economic) obsolescence—as measured on the date of the appraisal.
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