Property Valuation
In the cost approach, what does accrued depreciation include?
APhysical deterioration only
BFunctional obsolescence only
CExternal obsolescence only
DPhysical deterioration, functional obsolescence, and external obsolescence✓ Correct
Explanation
Accrued depreciation in the cost approach includes all three types: physical deterioration (wear and tear), functional obsolescence (outdated features), and external (economic) obsolescence (outside forces).
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