Property Valuation
An appraiser estimates a property has a reproduction cost of $250,000, accrued depreciation of $50,000, and land value of $75,000. The indicated value using the cost approach is:
A$175,000
B$250,000
C$275,000✓ Correct
D$325,000
Explanation
Cost Approach Value = Reproduction Cost − Accrued Depreciation + Land Value. = $250,000 − $50,000 + $75,000 = $275,000.
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