Property Valuation
Accrued depreciation in the cost approach refers to:
AThe annual amount the IRS allows for tax deductions
BThe total loss in value from all causes at the time of appraisal✓ Correct
CPhysical deterioration only
DThe building's remaining economic life
Explanation
Accrued depreciation is the total loss in value from all causes (physical deterioration, functional obsolescence, and external obsolescence) from the time the improvement was built to the present date of appraisal.
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