Property Valuation
The principle of contribution in appraisal states that:
AA property's value equals the sum of its individual components
BThe value of a component is measured by how much it adds to the total property value, not its cost✓ Correct
CAll improvements add their full cost to property value
DLand value increases as improvements are added proportionally
Explanation
The principle of contribution states that the value of any component is measured by the amount it contributes to the total value of the property, which may be more or less than its actual cost.
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