Property Valuation
In the cost approach, accrued depreciation includes:
AOnly physical deterioration
BPhysical deterioration, functional obsolescence, and external obsolescence✓ Correct
COnly functional obsolescence
DMarket fluctuation and interest rate changes
Explanation
Accrued depreciation in the cost approach encompasses all forms of value loss: physical deterioration (wear and tear), functional obsolescence (outdated features), and external obsolescence (outside factors).
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