Real Estate Math
An Iowa appraisal uses the cost approach. The land is worth $45,000, the reproduction cost of the building is $175,000, and the total accrued depreciation is $35,000. What is the indicated value?
A$140,000
B$175,000
C$185,000✓ Correct
D$220,000
Explanation
Value (Cost Approach) = Land Value + (Reproduction Cost − Depreciation) = $45,000 + ($175,000 − $35,000) = $45,000 + $140,000 = $185,000.
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