Property Valuation
In the cost approach, 'reproduction cost' differs from 'replacement cost' in that reproduction cost is:
AThe cost to build a functionally equivalent building using modern materials and design
BThe cost to build an exact replica of the existing structure using the same materials and methods✓ Correct
CThe cost to repair the existing structure to its original condition
DThe depreciated value of all existing improvements
Explanation
Reproduction cost is the cost to build an exact duplicate of the existing structure using the same materials, design, and construction methods, regardless of current standards. Replacement cost uses current materials and modern design to create a functionally equivalent building.
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