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Cost ApproachEASY13.6% of exam

The roof needs replacement at a cost of $8,400 and the exterior needs painting at a cost of $2,600. Both are economically feasible to correct. What is the curable physical deterioration?

Correct Answer

C) $11,000

Why this is correct: curable physical deterioration is measured at the cost to cure, and both items qualify. Calculation: $8,400 + $2,600 = $11,000. Why the other choices are wrong: $8,400 and $2,600 each count one item and ignore the other; $16,800 counts the roof twice.

Answer Options
A
$2,600
B
$8,400
C
$11,000
D
$16,800

Why This Is the Correct Answer

Why this is correct: curable physical deterioration is measured at the cost to cure, and both items qualify. Calculation: $8,400 + $2,600 = $11,000. Why the other choices are wrong: $8,400 and $2,600 each count one item and ignore the other; $16,800 counts the roof twice.

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