Property Valuation
Accrued depreciation in the cost approach is the difference between:
AThe original purchase price and current market value
BThe replacement cost new and the current value of the improvements✓ Correct
CThe tax-assessed value and the appraised value
DThe listing price and the sale price
Explanation
Accrued depreciation in the cost approach is the loss in value of improvements from all causes (physical deterioration, functional obsolescence, external obsolescence) measured from the replacement cost new.
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