Property Valuation
An appraiser estimates the reproduction cost of a 1920s Philadelphia row home at $350,000 and calculates 40% total depreciation. What is the depreciated value of the improvements?
A$140,000
B$210,000✓ Correct
C$250,000
D$280,000
Explanation
Depreciated value = Reproduction Cost × (1 − Depreciation Rate) = $350,000 × (1 − 0.40) = $350,000 × 0.60 = $210,000. In the cost approach, depreciation from all sources (physical, functional, external) is deducted from the reproduction or replacement cost.
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