Cost Approach Quiz #5

You are using the observed Depreciation method to determine the amount of accrued Depreciation in 20 year old apartment building.  Based on the information below, what is the $ amount and Percent of total accrued depreciation?

$86,900 and %16.37

Which section or rule states that newly constructed or new construction includes any substantial addition to land or improvements?

Section 75.12

Rule 2

Rule 463 (b)

Section 71

Rule 463 (b)?

The three types of depreciation include all except which one? 

Physical Deterioration

External Obsolescence

Functional Obsolescence

Economic Obsolescence

None of the above

None of the above

Using straight-line depreciation, what is the percent good of a 32 year old building, with an Effective Year of 1995, that has an economic life of eighty years?   

40%

60%

64%

36%

60%

You are trying to determine the accrued depreciation of the Bates hotel.  After looking at the property, you determine that the RCN for the improvements is $3,750,000.  The hotel sits on 32,000 sq ft of land and land in the area has sold for $12.50/sq ft.  The property recently sold for $3,200,000.  The accrued depreciation is:

$550,000

$825,000

$750,000

$950,000

$950,000

You find a 1950 year built SFR that is 1200 sq ft.  In reviewing the records, you see that there was a 400 sq ft addition completed in 1995.  The EY for the SFR has not been updated.  What would you update the EY to be?  

1958

1961

1963

1968

None of the above

1961

When valuing land, common area interest, airspace, zoning and other land-use regulations and local environmental laws are examples of what?

Legal and locational features

Terms of Sale

Use Restrictions

Physical Characteristics

Legal and locational features

What class of construction is Fire resistant, structural steel frame; fireproofing maybe of concrete, masonry or sprayed on fire inhibitors?

Class A

Class B

Class C

Class D

None of the above

Class A

What class of construction is Fire resistant, concrete or masonry with some wood & sheet metal?

Class A

Class B

Class C

Class D

None of the above

Class C

Which Quality Class has the highest $ per sq foot?

Class A

Class B

Class C

Class D

DX

Class A and DX?