Property Valuation
Depreciation in the cost approach to appraisal refers to:
AThe tax deduction for investment property
BAny loss in value from any cause✓ Correct
CThe reduction in loan balance over time
DA decrease in assessed value after an appeal
Explanation
In the cost approach, depreciation refers to any loss in value from any cause, including physical deterioration, functional obsolescence, and external (economic) obsolescence.
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