Property Valuation
A Missouri home has a replacement cost new of $220,000, total depreciation of 25%, and land value of $50,000. What is the cost approach value?
A$165,000
B$215,000✓ Correct
C$220,000
D$230,000
Explanation
Depreciated cost = $220,000 × (1 − 25%) = $220,000 × 0.75 = $165,000. Value = $165,000 + $50,000 = $215,000.
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