oman had a fourth bedroom built onto her house last year that cost $75,000. A recent appraisal valued the bedroom at $52,000. This demonstrates the principle of

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Janetjthompson3257idn Janetjthompson3257idn

01-01-2021
Business

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oman had a fourth bedroom built onto her house last year that cost $75,000. A recent appraisal valued the bedroom at $52,000. This demonstrates the principle of

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Parrainidn Parrainidn · Answer 1 · 2021-01-06T22:14:11-05:00

Parrainidn Parrainidn

06-01-2021

Answer: Contribution

Explanation:

The principle of Contribution explains the notion that when an improvement is made to a property, that improvement is to be valued at the contribution it makes to the market value of property as a whole instead of its construction cost.

Oman's fourth bedroom contributed $52,000 to her house so this is what it will be valued at instead of its cost of $75,000.

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