CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

A house has a value of $400,000 as a house. It has a site value of $500,000 as a commercial lot, but the cost to demolish the house and prepare the site is $120,000. What is the house' market value?
A. $380,000
B. $400,000
C. $500,000
Explanation: The highest and best use of the house is to keep the existing residential use.

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