Property Valuation
A Louisiana property has a replacement cost of $280,000, land value of $60,000, and total accrued depreciation of $40,000. What is the estimated value using the cost approach?
A$240,000
B$280,000
C$300,000✓ Correct
D$320,000
Explanation
Cost approach value = (Replacement Cost − Depreciation) + Land Value = ($280,000 − $40,000) + $60,000 = $240,000 + $60,000 = $300,000.
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