Property Valuation
In the cost approach to value, the appraiser estimates the value of the land separately because:
ALand and improvements have the same depreciation rates
BLand is considered indestructible and does not depreciate like improvements✓ Correct
CThe tax assessor requires separate valuations
DLand value always exceeds improvement value
Explanation
In the cost approach, land is valued separately using the sales comparison approach because land does not wear out or depreciate as buildings do. Only the improvements (structures) are subject to depreciation. The total property value = land value + depreciated cost of improvements.
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