The indications run from $296,000 to $334,000. Expressed against the low indication, what is the spread?
Correct Answer
B) 12.8%
Why this is correct: Calculation: ($334,000 - $296,000) / $296,000 = 12.8%. Why the other choices are wrong: 11.4% divides by the high indication; 6.4% halves the result; 38.0% is the dollar spread in thousands rather than a rate.
Why This Is the Correct Answer
Why this is correct: Calculation: ($334,000 - $296,000) / $296,000 = 12.8%. Why the other choices are wrong: 11.4% divides by the high indication; 6.4% halves the result; 38.0% is the dollar spread in thousands rather than a rate.
More Reconciliation Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
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An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
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What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
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