Property Valuation

In the cost approach, accrued depreciation includes which three types?

APhysical, functional, and external obsolescence✓ Correct
BStructural, mechanical, and cosmetic deterioration
CCurable, incurable, and deferred maintenance
DShort-lived, long-lived, and land depreciation

Explanation

Accrued depreciation in the cost approach is measured in three forms: physical deterioration (wear and tear), functional obsolescence (outdated design or features), and external (economic) obsolescence (factors outside the property affecting value).

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