Property Valuation
In Michigan, depreciation in the cost approach includes all of the following EXCEPT:
APhysical deterioration
BFunctional obsolescence
CExternal obsolescence
DAppreciation due to market improvements✓ Correct
Explanation
In the cost approach, depreciation accounts for loss in value from physical deterioration, functional obsolescence, and external obsolescence. Appreciation is not a form of depreciation — it represents an increase in value.
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