Real Estate Math
A Virginia property's replacement cost new is $350,000. It has accrued 30% depreciation. Land value is $100,000. What is the indicated value using the cost approach?
A$345,000✓ Correct
B$293,250
C$355,000
D$350,000
Explanation
Depreciated cost = $350,000 × (1 – 0.30) = $350,000 × 0.70 = $245,000. Total value = $245,000 + $100,000 = $345,000.
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