1. A house with a total living area of 3,000 square feet would cost $80 per squa
ID: 2709734 • Letter: 1
Question
1. A house with a total living area of 3,000 square feet would cost $80 per square foot to reproduce new. It has an expected economic life of 100 years and is estimated to have an effective age of 5 years. The lot has a market value of $35,000. What is the estimated value of the property using the cost approach?
2. Consider the following market sales:
3. If 5% of jobs in northeast Tennessee are in industry j and 7% of the jobs in the nation are in industry j, what is the location quotient for industry j?
Bldg A Bldg B Bldg C Price $1,000,000 $1,500,000 1,250,000 Gross income $100,000 $150,000 125,000Explanation / Answer
Answer:1
Reproduction cost 240,000
Less: Depreciation (12,000) [$240,000 x 5/100]
Depreciable Cost of Building Improvements 228,000
Add: Estimated Value 35,000
Indicated Value by the Cost Approach 263000
Answer:2
Bldg A Bldg B Bldg C Total Price $1,000,000 $1,500,000 1,250,000 $3,750,000 Gross income $100,000 $150,000 125,000 $375,000 Gross margin % 10.00% 10.00% 10.00% 10.00%Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.