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When two approaches produce widely divergent indications, Standards require the appraiser to:

Correct Answer

C) Analyze the divergence rather than simply average it

Why this is correct: USPAP Standards require reconciliation, which is an analysis of the reliability and applicability of each approach, not mechanical averaging. Why the other choices are wrong: Reporting without reconciliation fails to provide a credible opinion. Discarding an indication without analysis is improper. Client preference cannot determine the value conclusion. Exam tip: Reconcile by analyzing why approaches differ, not by averaging or ignoring the difference.

Answer Options
A
Report both without any reconciliation
B
Discard the lower of the two divergent indications
C
Analyze the divergence rather than simply average it
D
Adopt the approach the client prefers

Why This Is the Correct Answer

Why this is correct: USPAP Standards require reconciliation, which is an analysis of the reliability and applicability of each approach, not mechanical averaging. Why the other choices are wrong: Reporting without reconciliation fails to provide a credible opinion. Discarding an indication without analysis is improper. Client preference cannot determine the value conclusion. Exam tip: Reconcile by analyzing why approaches differ, not by averaging or ignoring the difference.

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