Property Valuation
An appraiser using the cost approach for a Bozeman single-family home calculates that the improvements have 20% physical depreciation. If the structure's reproduction cost is $250,000, what is the depreciated value of the improvements?
A$50,000
B$200,000✓ Correct
C$225,000
D$230,000
Explanation
Depreciated value = $250,000 × (1 − 0.20) = $250,000 × 0.
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