Property Valuation
Accrued depreciation in the cost approach includes:
ADepreciation taken for income tax purposes
BPhysical deterioration, functional obsolescence, and external obsolescence✓ Correct
CThe cost of land, which cannot be depreciated
DOnly structural damage from natural disasters
Explanation
Accrued depreciation in appraisal encompasses all forms of value loss: physical deterioration (wear), functional obsolescence (poor design), and external obsolescence (outside factors).
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