Property Valuation
A Maine property has a replacement cost new of $400,000 and total accrued depreciation of $60,000. The land value is $75,000. What is the value indication using the cost approach?
A$340,000
B$415,000✓ Correct
C$460,000
D$335,000
Explanation
Cost approach value = (Replacement cost - Depreciation) + Land value = ($400,000 - $60,000) + $75,000 = $340,000 + $75,000 = $415,000.
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