A comparable sold for $340,000, requires a +4% market conditions adjustment, and then a -$12,000 physical adjustment. What is the adjusted price?
Correct Answer
D) $341,600
Why this is correct: market conditions apply to the sale price, and the physical adjustment is already stated in current dollars. Calculation: $340,000 × 1.04 = $353,600; $353,600 - $12,000 = $341,600. Why the other choices are wrong: $341,120 deducts the physical adjustment first and then inflates it by 4% along with everything else; $353,600 stops before the physical adjustment; $328,000 omits market conditions.
Why This Is the Correct Answer
Why this is correct: market conditions apply to the sale price, and the physical adjustment is already stated in current dollars. Calculation: $340,000 × 1.04 = $353,600; $353,600 - $12,000 = $341,600. Why the other choices are wrong: $341,120 deducts the physical adjustment first and then inflates it by 4% along with everything else; $353,600 stops before the physical adjustment; $328,000 omits market conditions.
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