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Cost ApproachMEDIUM13.6% of exam

The dwelling costs $296,000 new. A 528 square foot garage costs $52 per square foot, and the driveway, walks and landscaping cost $14,500. What is the total cost new?

Correct Answer

B) $337,956

Why this is correct: site improvements are part of cost new even though the site itself is not. Calculation: $296,000 + (528 x $52) + $14,500 = $296,000 + $27,456 + $14,500 = $337,956. Why the other choices are wrong: $323,456 omits the site improvements and $310,500 omits the garage; $352,456 counts the site improvements twice.

Answer Options
A
$323,456
B
$337,956
C
$352,456
D
$310,500

Why This Is the Correct Answer

Why this is correct: site improvements are part of cost new even though the site itself is not. Calculation: $296,000 + (528 x $52) + $14,500 = $296,000 + $27,456 + $14,500 = $337,956. Why the other choices are wrong: $323,456 omits the site improvements and $310,500 omits the garage; $352,456 counts the site improvements twice.

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