Cost Approach

A building cost $2,500,000 to construct 8 years ago. Using straight-line depreciation over a 40-year life, what is the current depreciated value?

A property has a replacement cost of $1,800,000. Physical deterioration is estimated at $200,000, functional obsolescence at $150,000, and external obsolescence at $100,000. What is the depreciated value using the breakdown method?

In a cost approach for a proposed building, the appropriate cost basis is generally:

A building cost $2,400,000 to construct new. After 8 years with straight-line depreciation over 40 years, what is the depreciated value?

In analyzing functional utility, which factor would most likely indicate functional obsolescence?

A 45-year-old office building has undergone multiple high-quality renovations, including HVAC replacement, seismic retrofitting, and full interior modernization. Its functional layout remains competitive with new construction, and it occupies a stable, well-located corridor. The appraiser estimates its total economic life at 70 years. Which estimate of effective age is most supportable under USPAP and recognized cost approach methodology?

A 15-year-old building has an effective age of 10 years. This indicates that:

A commercial building cost $2,500,000 to construct. The land value is $600,000. If the building has suffered 15% physical deterioration and 8% functional obsolescence, what is the depreciated cost of the improvements?

A home has 3 bedrooms but only 1 bathroom, while typical homes in the market have 2 or more bathrooms. This deficiency would be classified as:

A warehouse cost $210,000 to build when the cost index stood at 105. The index is now 210. Its indicated current cost is:

A building has a reproduction cost new of $450,000. Physical deterioration is estimated at 15%, functional obsolescence at 8%, and external obsolescence at 5%. What is the depreciated value of the improvements?

A building has a reproduction cost new of $500,000. It has 20% physical deterioration, 10% functional obsolescence, and 5% external obsolescence. What is the depreciated value of the improvements?

Using the age-life method, what is the accrued depreciation for a 15-year-old building with a total economic life of 60 years and a reproduction cost of $400,000?

Which event would RAISE a building's effective age relative to last year's estimate?

In the cost approach, economic obsolescence is characterized as:

A building has a reproduction cost new of $800,000. Physical deterioration is estimated at 15%, functional obsolescence at 10%, and external obsolescence at 5%. What is the depreciated value of the improvements?

Functional obsolescence can be caused by:

A 15-year-old building that appears to be only 10 years old due to excellent maintenance would have an effective age of:

What is the primary difference between effective age and actual age of a building?

Two identical houses were built the same year; one has been meticulously maintained, the other neglected. Their age-life analyses differ because:

Functional obsolescence can be described as:

External obsolescence is characterized by:

A building with an actual age of 20 years and an effective age of 25 years would indicate:

Physical deterioration in the cost approach refers to:

A building was constructed 15 years ago but appears to be in the condition of a typical 10-year-old building due to excellent maintenance. What is the building's effective age?

What is the difference between replacement cost and reproduction cost?

A building cost $800,000 to construct and has an economic life of 40 years. Using straight-line depreciation, what is the annual depreciation amount?

A home has a poorly designed kitchen with inadequate counter space and an awkward work triangle. This represents which type of depreciation?

A building has a reproduction cost of $1,200,000. Land value is $300,000 and the total property value is $1,100,000. Using the extraction method, what is the total depreciation?

Which of the following would be considered external obsolescence?

A building cost $500,000 to construct. Using the extraction method, if the land value is $150,000 and the property sold for $580,000, what is the indicated depreciation?

The age-life method expresses depreciation as:

Which of the following BEST describes external obsolescence?

In the cost approach, functional obsolescence is best described as:

A building cost $750,000 new and is 8 years old with a 60-year economic life. Using straight-line depreciation, what is the current depreciated value?

Using the straight-line method, what is the annual depreciation for a building with a cost new of $500,000 and an economic life of 40 years?

A house has one bathroom in a market that expects two and a half. What kind of depreciation is this?

Market extraction of depreciation is limited by the fact that it:

Which cost-estimating method is the most detailed and the least used in everyday appraisal work?

A 15-year-old house has cost new of $420,000 with short-lived items totaling $58,000 in cost and $24,000 of depreciation charged against them. If the long-lived ratio is 18%, total physical depreciation is:

A warehouse has 12-foot clear ceiling height where the market now demands 24 feet. This is:

Functional obsolescence caused by a deficiency is measured as curable when:

Functional obsolescence in a residential property is best exemplified by:

Curable physical deterioration is measured at cost to cure because:

Total economic life differs from remaining economic life in that total economic life:

Using the straight-line method, what is the annual depreciation for a building with a cost new of $500,000 and an economic life of 50 years?

A 2,050 sq ft dwelling is priced at $178 per square foot with a $34,000 detached garage and $21,500 of site improvements. Cost new is:

A 1,500 square foot home has only one bathroom. Typical homes of this size in the market have 2.5 bathrooms. This represents:

A house has three bedrooms sharing one bathroom, and adding a second bath is economically justified. This is:

Direct costs in a construction budget include: