Property Valuation
In Hawaii, the cost approach to value includes which components?
AA. Land value + replacement cost - accrued depreciation✓ Correct
BB. Sales price + improvements - depreciation
CC. Income × cap rate + land value
DD. Land value + historical cost of improvements
Explanation
The cost approach = Land value + Replacement (or reproduction) cost of improvements - Accrued depreciation. Depreciation accounts for physical deterioration, functional and external obsolescence.
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