Property Valuation
When appraising a Providence property using the cost approach, the appraiser estimates land value separately from improvements because:
ALand cannot be depreciated✓ Correct
BImprovements are always worth more than land
CTax assessors require it
DLand value always increases over time
Explanation
In the cost approach, land and improvements are valued separately because land is not depreciable—it does not wear out or become obsolete. Only improvements (buildings and structures) can be depreciated.
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