Property Valuation
In the cost approach, if land value is $50,000, replacement cost new of improvements is $280,000, and total depreciation is 25%, the estimated value is:
A$240,000
B$260,000✓ Correct
C$270,000
D$280,000
Explanation
Depreciated improvement value = $280,000 × (1 − 0.25) = $280,000 × 0.
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