Architecture Board Exam - Site Planning Practice] Practice Exam

In the Cost Approach, what does 'accrued depreciation' represent?

The total cost to build a new structure The difference between cost new and current value The value of the land only The future increase in property value

Correct Answer:

The difference between cost new and current value

Explanation:

Accrued depreciation is the difference between the cost of the improvements new and the present worth of the improvements.

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