Property Valuation
A Texas appraiser uses the cost approach to value a newly constructed commercial building. The land is valued at $150,000 and the building replacement cost is $800,000 with no depreciation (new). What is the estimated value?
A$800,000
B$850,000
C$950,000✓ Correct
D$1,000,000
Explanation
In the cost approach: Value = Land Value + Depreciated Cost of Improvements = $150,000 + $800,000 = $950,000.
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