Property Valuation
An Iowa appraiser using the cost approach calculates the replacement cost of a building at $350,000. Physical depreciation is $70,000, functional obsolescence is $15,000, and land value is $65,000. What is the indicated value?
A$295,000
B$315,000
C$330,000✓ Correct
D$345,000
Explanation
Depreciated building value = $350,000 − $70,000 − $15,000 = $265,000. Total value = $265,000 + $65,000 = $330,000.
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