Real Estate Math
A Delaware property has a replacement cost of $550,000, accrued depreciation of $110,000, and land value of $120,000. What is the indicated value by cost approach?
A$540,000
B$560,000✓ Correct
C$440,000
D$580,000
Explanation
Cost approach value = (Replacement Cost − Depreciation) + Land = ($550,000 − $110,000) + $120,000 = $440,000 + $120,000 = $560,000.
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