CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

A house has a value of $200,000 as a house. It has a site value of $250,000 as a commercial lot, but the cost to demolish the house and prepare the site is $25,000. What is the house' market value?

A. $200,000.
B. $225,000.
C. $250,000.
Correct Answer: B

The highest and best use of the site is to demolish the house and sell the site as a commercial lot. $250,000 - 25,000 = $225,000.

User Contributed Comments 1

User Comment
rlabog Highest and best use
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