Real Estate Math
A Michigan building has a reproduction cost of $450,000 and accumulated depreciation of $90,000. The land is valued at $60,000. What is the indicated value using the cost approach?
A$420,000✓ Correct
B$360,000
C$510,000
D$540,000
Explanation
Depreciated value of improvements = $450,000 - $90,000 = $360,000. Total value = $360,000 + $60,000 (land) = $420,000.
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