Property Valuation
Depreciation in the cost approach includes which three categories?
APhysical deterioration, functional obsolescence, and external (economic) obsolescence✓ Correct
BMarket decline, structural damage, and zoning changes
CAge, wear, and appreciation
DCurability, incurability, and deferred maintenance only
Explanation
Depreciation in the cost approach is categorized as: physical deterioration (wear and tear), functional obsolescence (design deficiencies), and external/economic obsolescence (external forces reducing value).
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