Property Valuation
In the cost approach, 'land value' is estimated separately because:
ALand can be depreciated for tax purposes
BLand is considered non-depreciable; only improvements depreciate✓ Correct
CLand value is always higher than improvement value
DNC law requires a separate land appraisal
Explanation
In the cost approach, land is valued separately because land does not depreciate — only the improvements (buildings) lose value over time. Land value is estimated by the sales comparison approach.
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