REE 4103 EXAM QUESTIONS WITH
REVISED ANSWERS – UPDATED
The amount of depreciation for the HVAC, Plumbing, Lighting Fixtures, - Answer-20%,
16.7%, 16.7%, 20%, and 33.3% respectively
Cost Approach:
Residence:
2,000 square feet $100/sf cost to build
Basement:
1,000 square feet $50/sf cost to build
Garage:
750 square feet $75/sf cost to build
Screened porch:
400 square feet $25/sf cost to buid
Short-lived items:
HVAC $10,000 new effective age of 5 years life expectancy of 25 years
Plumbing Fixtures $20,000 new effective age of 5 years life expectancy of 30 years
Lighting Fixtures $15,000 new effective age of 5 years life expectancy of 30 years
Roof covering $12,000 new effective age of 5 years life expectancy of 25 years
Carpet/Vinyl $7,000 new effective age of 5 years life expectancy of 15 years
No Deferred Maintenance
Long-lived items - effective age of 5 years life expectancy of 70 years
Functional obsolescence - $5,000 in depreciation resulting from bad floor plan
External obsolescence - None.
,Market Value of Land = $75,000
The total amount of depreciation for all the short-lived items togethe - Answer-$12,566
Cost Approach:
Residence:
2,000 square feet $100/sf cost to build
Basement:
1,000 square feet $50/sf cost to build
Garage:
750 square feet $75/sf cost to build
Screened porch:
400 square feet $25/sf cost to buid
Short-lived items:
HVAC $10,000 new effective age of 5 years life expectancy of 25 years
Plumbing Fixtures $20,000 new effective age of 5 years life expectancy of 30 years
Lighting Fixtures $15,000 new effective age of 5 years life expectancy of 30 years
Roof covering $12,000 new effective age of 5 years life expectancy of 25 years
Carpet/Vinyl $7,000 new effective age of 5 years life expectancy of 15 years
No Deferred Maintenance
Long-lived items - effective age of 5 years life expectancy of 70 years
Functional obsolescence - $5,000 in depreciation resulting from bad floor plan
External obsolescence - None.
Market Value of Land = $75,000
The cost new of all the long-lived items is:
A. $303,674
B. $252,250 - Answer-$252,250
Cost Approach:
Residence:
2,000 square feet $100/sf cost to build
Basement:
1,000 square feet $50/sf cost to build
Garage:
750 square feet $75/sf cost to build
Screened porch:
400 square feet $25/sf cost to buid
Short-lived items:
HVAC $10,000 new effective age of 5 years life expectancy of 25 years
Plumbing Fixtures $20,000 new effective age of 5 years life expectancy of 30 years
Lighting Fixtures $15,000 new effective age of 5 years life expectancy of 30 years
Roof covering $12,000 new effective age of 5 years life expectancy of 25 years
Carpet/Vinyl $7,000 new effective age of 5 years life expectancy of 15 years
No Deferred Maintenance
, Long-lived items - effective age of 5 years life expectancy of 70 years
Functional obsolescence - $5,000 in depreciation resulting from bad floor plan
External obsolescence - None.
Market Value of Land = $75,000
The depreciation of all the long-lived items is:
A. $18,017.85
B. $23 - Answer-$18,017.85
Cost Approach:
Residence:
2,000 square feet $100/sf cost to build
Basement:
1,000 square feet $50/sf cost to build
Garage:
750 square feet $75/sf cost to build
Screened porch:
400 square feet $25/sf cost to buid
Short-lived items:
HVAC $10,000 new effective age of 5 years life expectancy of 25 years
Plumbing Fixtures $20,000 new effective age of 5 years life expectancy of 30 years
Lighting Fixtures $15,000 new effective age of 5 years life expectancy of 30 years
Roof covering $12,000 new effective age of 5 years life expectancy of 25 years
Carpet/Vinyl $7,000 new effective age of 5 years life expectancy of 15 years
No Deferred Maintenance
Long-lived items - effective age of 5 years life expectancy of 70 years
Functional obsolescence - $5,000 in depreciation resulting from bad floor plan
External obsolescence - None.
Market Value of Land = $75,000
The total depreciation from all causes is:
A. $0.00
B. $35,583
C. $30 - Answer-$35,583
Cost Approach:
Residence:
2,000 square feet $100/sf cost to build
Basement:
1,000 square feet $50/sf cost to build
Garage:
750 square feet $75/sf cost to build
Screened porch:
400 square feet $25/sf cost to buid
Short-lived items:
HVAC $10,000 new effective age of 5 years life expectancy of 25 years
Plumbing Fixtures $20,000 new effective age of 5 years life expectancy of 30 years
