Property Valuation
An appraiser is performing a cost approach analysis. The replacement cost of the improvements is $350,000, and total depreciation is $75,000. The land value is $80,000. What is the estimated property value?
A$275,000
B$355,000✓ Correct
C$430,000
D$505,000
Explanation
Cost Approach Value = (Replacement Cost − Depreciation) + Land Value = ($350,000 − $75,000) + $80,000 = $275,000 + $80,000 = $355,000.
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