Barney Fletcher Practice Exam 1 With Best Solutions

Barney Fletcher Practice Exam 1 With Best Solutions Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C. reproduction cost D. allowance for vacancy -Correct Answer-C. reproduction cost A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical depreciation. What would be the estimate of value for this property using the cost approach? A. $133,500 B. $140,000 C. $173,500 D. $180,000 -Correct Answer-C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500 A well maintained home in an area of run down homes would be an example of: A. physical depreciation B. functional obsolescence C. external obsolescence D. reproduction cost -Correct Answer-C. external obsolescence An appraiser who was considering the effective age of a property with the chronological age would usually accept each of the following statements EXCEPT: