Property Valuation
A property has a replacement cost of $400,000, accrued depreciation of $80,000, and land value of $100,000. What is the estimated value using the cost approach?
A$380,000
B$400,000
C$420,000✓ Correct
D$360,000
Explanation
Cost Approach Value = Replacement Cost − Depreciation + Land Value = $400,000 − $80,000 + $100,000 = $420,000.
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