Real Estate Math
A Washington appraisal uses the cost approach. Land is worth $95,000. Building replacement cost is $340,000. Total physical depreciation is 15%. What is the total property value?
A$369,500
B$374,000
C$384,000✓ Correct
D$435,000
Explanation
Depreciated building = $340,000 × (1 − 0.15) = $340,000 × 0.
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