The subject contains 1,950 square feet and a comparable contains 1,800. Gross living area is supported at $68 per square foot. What adjustment applies to the comparable?
Correct Answer
D) +$10,200
Why this is correct: the comparable is smaller, so it is inferior and adjusted upward. Calculation: (1,950 - 1,800) × $68 = +$10,200. Why the other choices are wrong: -$10,200 adjusts the smaller property downward; +$132,600 and +$122,400 apply the rate to the whole area of the subject and of the comparable rather than to the 150 square foot difference between them.
Why This Is the Correct Answer
Why this is correct: the comparable is smaller, so it is inferior and adjusted upward. Calculation: (1,950 - 1,800) × $68 = +$10,200. Why the other choices are wrong: -$10,200 adjusts the smaller property downward; +$132,600 and +$122,400 apply the rate to the whole area of the subject and of the comparable rather than to the 150 square foot difference between them.
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