Property Valuation

An Iowa appraiser is calculating the cost approach for a property. The replacement cost is $280,000, accrued depreciation is $42,000, and land value is $55,000. What is the appraised value?

A$238,000
B$265,000
C$293,000✓ Correct
D$335,000

Explanation

Cost approach value = (Replacement cost − Depreciation) + Land value = ($280,000 − $42,000) + $55,000 = $238,000 + $55,000 = $293,000.

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