An extraordinary assumption must be:

Correct Answer

A) Clearly disclosed and its impact on value discussed

Why this is correct: The governing concept under USPAP is that an extraordinary assumption, which is an assumption that if found false could alter the appraiser's opinions or conclusions, must be clearly disclosed in the report. The appraiser must also discuss the assumption's impact on the assignment results and explain why it was necessary. Why the other choices are wrong: "Avoided whenever possible regardless of assignment conditions" is incorrect because extraordinary assumptions are sometimes necessary; the key is proper disclosure. "Reasonable and supported by market evidence" is incorrect because while assumptions should be reasonable, the primary requirement is disclosure and impact discussion, not necessarily market support. "Disclosed in the report but verification is optional" is incorrect because USPAP requires disclosure and discussion of impact, not merely disclosure without analysis. Exam tip: Always clearly disclose extraordinary assumptions and explain their impact on value.